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Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 513599 | NSE: HINDCOPPER

Hindustan Copper Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:11 pm

Market Cap 25,404 Cr.
Current Price 263
High / Low416/156
Stock P/E63.1
Book Value 24.9
Dividend Yield0.35 %
ROCE18.0 %
ROE13.5 %
Face Value 5.00
PEG Ratio2.45

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Hindustan Copper Ltd

Competitors of Hindustan Copper Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Baroda Extrusion Ltd 131 Cr. 8.7615.0/2.51 2.630.00 %6.20 %% 1.00
ABC Gas (International) Ltd 22.0 Cr. 111111/49.6 21.00.00 %13.5 %15.6 % 10.0
Sagardeep Alloys Ltd 43.8 Cr. 25.740.4/22.245.2 16.90.00 %5.54 %2.78 % 10.0
Rajnandini Metal Ltd 265 Cr. 9.5921.4/8.80157 1.960.00 %21.3 %31.1 % 1.00
Precision Wires India Ltd 3,072 Cr. 172221/10437.7 30.20.61 %25.4 %15.2 % 1.00
Industry Average4,887.83 Cr91.4254.8725.050.11%12.28%11.68%5.00

All Competitor Stocks of Hindustan Copper Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales268464544545348212557560371381399565494
Expenses147358413393222148443374278260293340305
Operating Profit1201071321521276411418693121107226188
OPM %45%23%24%28%36%30%20%33%25%32%27%40%38%
Other Income1112111611221252141110207
Interest11855445344443
Depreciation5919175555509614146305938
Profit before tax61921201097832111174628382183154
Tax %26%27%-43%18%27%19%28%24%24%27%23%32%26%
Net Profit466817289572680132476163124113
EPS in Rs0.470.701.780.920.590.270.831.370.490.630.651.291.17

Last Updated: October 8, 2024, 1:19 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 8, 2024, 1:19 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,3231,4891,0161,0721,2041,6701,8168321,7871,8221,6771,7171,840
Expenses1,0209848889629811,3991,3101,0741,3761,3101,1851,1701,198
Operating Profit303505128110223271506-242411512492547642
OPM %23%34%13%10%18%16%28%-29%23%28%29%32%35%
Other Income2571026752274137573550965548
Interest6213142660626430171715
Depreciation151174113119142165253291295150175175172
Profit before tax404431804094122230-53887382396410502
Tax %12%33%16%5%34%35%37%6%-26%2%25%28%
Net Profit35628668386280146-569110374295295362
EPS in Rs3.843.100.730.410.670.861.57-6.151.193.873.053.053.74
Dividend Payout %26%32%21%0%30%29%33%0%29%30%30%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-19.66%-76.22%-44.12%63.16%29.03%82.50%-489.73%119.33%240.00%-21.12%0.00%
Change in YoY Net Profit Growth (%)0.00%-56.56%32.11%107.28%-34.13%53.47%-572.23%609.06%120.67%-261.12%21.12%

Hindustan Copper Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:-1%
3 Years:-1%
TTM:6%
Compounded Profit Growth
10 Years:1%
5 Years:15%
3 Years:39%
TTM:26%
Stock Price CAGR
10 Years:12%
5 Years:48%
3 Years:28%
1 Year:65%
Return on Equity
10 Years:6%
5 Years:6%
3 Years:17%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital463463463463463463463463463484484484484
Reserves1,1891,3671,3999481,0041,0651,1744986271,4281,5991,8021,924
Borrowings0002074726571,0701,5641,13740915622292
Other Liabilities4614343711,181597630636802819844956971887
Total Liabilities2,1132,2632,2332,7992,5362,8143,3443,3263,0463,1643,1943,4793,386
Fixed Assets2062122021783543323163373222821,3261,4301,481
CWIP5876918517332796601,0221,2321,179683731917973
Investments89297176000011102929
Other Assets1,2311,3311,1081,8121,9031,8222,0051,7571,5442,1991,1271,102902
Total Assets2,1132,2632,2332,7992,5362,8143,3443,3263,0463,1643,1943,4793,386

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +215331237262-260372252868321,052674292
Cash from Investing Activity +-114-259-209-451-258-558-587-430-364-404-337-476
Cash from Financing Activity +-112-111-109183-8-9644542133-251-339-39
Net Cash Flow-11-38-80-7-526-282110-302601397-3-222

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow303.00505.00128.00-97.00-249.00-386.00505.00-243.00410.00103.00336.00325.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days514931205018733634161429
Inventory Days7371,189413
Days Payable204358147
Cash Conversion Cycle514931205055090336301161429
Working Capital Days95951781372431441693119325266
ROCE %26%24%4%2%6%7%12%-18%6%18%18%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.14%66.14%66.14%66.14%66.14%66.14%66.14%66.14%66.14%66.14%66.14%66.14%
FIIs1.07%0.26%0.31%0.67%1.32%1.45%1.51%1.80%2.18%2.05%3.13%3.22%
DIIs17.02%16.80%16.44%15.61%15.95%15.92%16.44%15.89%13.29%13.70%12.28%9.34%
Public15.77%16.79%17.10%17.58%16.59%16.49%15.90%16.18%18.39%18.11%18.45%21.30%
No. of Shareholders2,88,3033,07,3143,25,7763,50,8923,32,0483,26,9813,25,4543,20,9013,16,6843,64,2914,28,8015,92,285

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Invesco India Arbitrage Fund2,779,8500.5392.441,383,3002024-11-13100.96%
Kotak Equity Arbitrage Fund - Regular Plan2,655,3000.1788.31,383,3002024-11-1391.95%
SBI Arbitrage Opportunities Fund2,223,3500.2373.941,383,3002024-11-1360.73%
ICICI Prudential Equity - Arbitrage Fund1,701,3000.2356.581,383,3002024-11-1322.99%
Nippon India Arbitrage Fund1,579,4000.3352.521,383,3002024-11-1314.18%
DSP Arbitrage Fund1,383,3000.77461,383,3002024-11-130%
HDFC Arbitrage Fund - Regular Plan1,264,0500.2742.041,383,3002024-11-13-8.62%
HDFC Arbitrage Fund - Wholesale Plan1,264,0500.2742.041,383,3002024-11-13-8.62%
Edelweiss Arbitrage Fund1,181,9000.3239.31,383,3002024-11-13-14.56%
SBI Magnum Comma Fund813,400427.051,383,3002024-11-13-41.2%

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)3.053.063.871.19-6.15
Diluted EPS (Rs.)3.053.063.871.19-6.15
Cash EPS (Rs.)4.874.865.424.38-3.01
Book Value[Excl.RevalReserv]/Share (Rs.)23.6321.5319.7611.7710.38
Book Value[Incl.RevalReserv]/Share (Rs.)23.6321.5319.7611.7710.38
Revenue From Operations / Share (Rs.)17.7517.3418.8419.318.99
PBDIT / Share (Rs.)6.226.075.804.81-2.02
PBIT / Share (Rs.)4.414.264.251.62-5.16
PBT / Share (Rs.)4.254.093.950.94-5.81
Net Profit / Share (Rs.)3.063.053.871.19-6.15
NP After MI And SOA / Share (Rs.)3.053.063.871.19-6.16
PBDIT Margin (%)35.0434.9630.7824.89-22.41
PBIT Margin (%)24.8624.5322.568.39-57.35
PBT Margin (%)23.9223.5820.974.89-64.62
Net Profit Margin (%)17.2217.6020.516.16-68.42
NP After MI And SOA Margin (%)17.1917.6120.516.16-68.45
Return on Networth / Equity (%)12.9214.1819.5510.11-59.32
Return on Capital Employeed (%)15.7419.1618.837.82-28.56
Return On Assets (%)9.039.8912.473.88-18.26
Long Term Debt / Equity (X)0.030.010.100.700.66
Total Debt / Equity (X)0.090.070.211.041.63
Asset Turnover Ratio (%)0.540.560.620.600.25
Current Ratio (X)1.050.831.130.880.71
Quick Ratio (X)0.640.690.990.680.35
Inventory Turnover Ratio (X)0.280.130.940.010.01
Dividend Payout Ratio (NP) (%)30.1237.969.050.00-10.18
Dividend Payout Ratio (CP) (%)18.9223.846.460.00-20.80
Earning Retention Ratio (%)69.8862.0490.950.00110.18
Cash Earning Retention Ratio (%)81.0876.1693.540.00120.80
Interest Coverage Ratio (X)37.3336.8219.387.11-3.09
Interest Coverage Ratio (Post Tax) (X)19.3519.5413.932.76-8.42
Enterprise Value (Cr.)27050.719374.7311032.8912182.963518.52
EV / Net Operating Revenue (X)15.755.596.066.824.23
EV / EBITDA (X)44.9515.9819.6727.38-18.87
MarketCap / Net Operating Revenue (X)15.675.686.036.192.37
Retention Ratios (%)69.8762.0390.940.00110.18
Price / BV (X)11.774.575.7510.152.05
Price / Net Operating Revenue (X)15.675.686.036.192.37
EarningsYield0.010.030.030.01-0.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hindustan Copper Ltd as of November 15, 2024 is: 212.85

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 15, 2024, Hindustan Copper Ltd is Overvalued by 19.07% compared to the current share price 263.00

Intrinsic Value of Hindustan Copper Ltd as of November 15, 2024 is: 267.63

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 15, 2024, Hindustan Copper Ltd is Undervalued by 1.76% compared to the current share price 263.00

Last 5 Year EPS CAGR: 25.74%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.88 and average Dividend Yield of 4.60%.
  2. The company has higher reserves (1,232.62 cr) compared to borrowings (460.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (64.92 cr) and profit (203.08 cr) over the years.
  1. The stock has a low average ROCE of 10.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 129.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 170.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Copper Ltd:
    1. Net Profit Margin: 17.22%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.74% (Industry Average ROCE: 12.28%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.92% (Industry Average ROE: 11.68%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 19.35
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 63.1 (Industry average Stock P/E: 54.87)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Hindustan Copper Ltd. is a Public Limited Listed company incorporated on 09/11/1967 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27201WB1967GOI028825 and registration number is 028825. Currently Company is involved in the business activities of Mining of copper ore. Company’s Total Operating Revenue is Rs. 1821.93 Cr. and Equity Capital is Rs. 483.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Metals - Non Ferrous - Copper/Copper Alloys - ProdTamara Bhavan, Kolkata West Bengal 700019investors_cs@hindustancopper.com
http://www.hindustancopper.com
Management
NamePosition Held
Mr. Ghanshyam SharmaChairman & Managing Director
Mr. Sanjiv Kumar SinghDirector - Mining
Mr. Annadevara Gurunadha Krishna PrasadIndependent Director
Mr. Avinash Janardan BhideIndependent Director
Mrs. Hemlata VermaIndependent Director
Mr. Sanjay PanjiyarDirector - Operations
Mr. Shakil AlamGovernment Nominee Director
Mr. Rabindra Prasad GuptaGovernment Nominee Director

FAQ

What is the latest intrinsic value of Hindustan Copper Ltd?

The latest intrinsic value of Hindustan Copper Ltd as on 15 November 2024 is ₹212.85, which is 19.07% lower than the current market price of ₹263.00.

What is the Market Cap of Hindustan Copper Ltd?

The Market Cap of Hindustan Copper Ltd is 25,404 Cr..

What is the current Stock Price of Hindustan Copper Ltd as on 15 November 2024?

The current stock price of Hindustan Copper Ltd as on 15 November 2024 is ₹263.

What is the High / Low of Hindustan Copper Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Copper Ltd stocks is 416/156.

What is the Stock P/E of Hindustan Copper Ltd?

The Stock P/E of Hindustan Copper Ltd is 63.1.

What is the Book Value of Hindustan Copper Ltd?

The Book Value of Hindustan Copper Ltd is 24.9.

What is the Dividend Yield of Hindustan Copper Ltd?

The Dividend Yield of Hindustan Copper Ltd is 0.35 %.

What is the ROCE of Hindustan Copper Ltd?

The ROCE of Hindustan Copper Ltd is 18.0 %.

What is the ROE of Hindustan Copper Ltd?

The ROE of Hindustan Copper Ltd is 13.5 %.

What is the Face Value of Hindustan Copper Ltd?

The Face Value of Hindustan Copper Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Copper Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE