Copper prices on the London Metal Exchange (LME) fell sharply by 3.40% to $13,157 per metric tonne, triggering concerns over near-term pressure on copper-linked companies. Since Hindustan Copper’s performance is closely tied to copper price movements, the weakness in the base metal is expected to influence the stock’s trajectory.
Hindustan Copper recent price action
On Friday, Hindustan Copper shares corrected sharply, falling 9.76% to Rs 685.90 on the NSE. The decline follows a strong rally in the stock, which had surged nearly 28% over the past week, prompting profit-booking at higher levels.
Expert View: Risk-Reward Turns Cautious
Sachin Gupta, Vice President – Research at Choice Equity Broking, believes the stock’s recent rally has stretched valuations and made the near-term risk-reward less attractive.
According to Gupta, Hindustan Copper gained over 55% in December 2025 and extended the momentum with more than 40% gains in the January series, meaning much of the positive outlook is already priced in. While the broader monthly trend remains bullish and the stock continues to trade above key moving averages, momentum indicators are signaling caution. The Relative Strength Index (RSI) is hovering close to overbought territory, suggesting the possibility of short-term consolidation or intermittent profit-taking.
Gupta believes the stock does not offer a favourable risk-reward for aggressive fresh buying at current prices. Traders, he said, should look for fresh entries on corrective dips around the Rs 700–690 zone, while those already holding positions may continue to ride the trend with a trailing stop-loss placed at Rs 650. On the upside, resistance is likely near the Rs 790 and Rs 830 levels.
Valuation snapshot
Hindustan Copper is currently trading at a Price-to-Earnings (P/E) ratio of 129.38 and a Price-to-Book (P/B) ratio of 27.62, reflecting rich valuations. These elevated metrics suggest that a significant amount of future growth is already factored into the stock price, which may limit upside potential and leaves little margin for negative surprises.
Shareholding Trend
On the institutional front, Foreign Institutional Investors (FIIs) increased their stake from 5.05% to 6.56% in the December 2025 quarter. This marks the third consecutive quarter of FII stake accumulation, reflecting long-term confidence in the company despite near-term volatility.
Technical Overview
The Day RSI (14) stands at 67.7, indicating strong bullish momentum in the stock. While the RSI is still below the overbought threshold of 70, it is moving closer to that zone, suggesting that buying interest remains firm but the scope for sharp upside may be limited in the short term as momentum begins to moderate.
On the trend front, Hindustan Copper continues to trade above all 8 key Simple Moving Averages (SMAs). This positioning highlights a strong underlying bullish structure and suggests that the recent correction has not damaged the broader trend, keeping the medium-term outlook positive despite near-term volatility.
While Hindustan Copper’s long-term trend remains positive, the combination of high valuations, near-overbought technical indicators, and weakness in global copper prices suggests that investors may need to exercise caution in the short term.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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