Hindustan Copper Ltd.
ISIN: INE531E01026 • Market Cap: ₹53,660 Cr
The 5-Pillar Quality Audit for Hindustan Copper Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (47.5%), Return on Capital Employed (22.4%), and equity compounding (17.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (27.8%) and 3Y PAT CAGR (56.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 47.21 vs PEG of 1.82 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 66.1%, backed by 10.8% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.4%)
Hindustan Copper Ltd. generates exceptional return on capital employed of 22.4%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 27.8%)
Revenue has expanded at 27.8% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 56.8%)
Net earnings have compounded at 56.8% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking HINDCOPPER against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 83/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Metals & Mining Sector Peer Comparison
Compare HINDCOPPER directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Hindustan Copper Ltd. (HINDCOPPER)Current | 83/100 | ₹53,660 Cr | 47.21 | 22.4% | 0.06 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
Frequently Asked Questions: Hindustan Copper Ltd.
Q:What is the 5-Pillar Fundamental Score for Hindustan Copper Ltd. (HINDCOPPER)?
Hindustan Copper Ltd. has a RupeeTools Fundamental Score of 83/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (87/100), Financial Health (89/100), Growth (99/100), Valuation (57/100), and Ownership Quality (72/100).
Q:Is HINDCOPPER fundamentally strong for long-term investment?
Yes, HINDCOPPER exhibits solid fundamental strength with a 83/100 score, driven by a return on equity of 17.5% and a debt-to-equity ratio of 0.06.
Q:Does HINDCOPPER pass the Coffee Can Investing filter?
Yes! HINDCOPPER satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does HINDCOPPER compare against other Metals & Mining peers?
Within India's Metals & Mining sector, HINDCOPPER trades at a P/E of 47.21 and generates an ROCE of 22.4%. Compare its 5-Pillar score of 83/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.