Hindustan Copper shares down 3% as metal prices slip over 1% on-year end profit taking. What are analysts saying?

Shares of Hindustan Copper shares slipped as much as 3.3% to Rs 515 on Wednesday, December 31, as copper prices edged lower after investors booked profits following a strong surge this year. A powerful mix of global supply disruptions, macroeconomic tailwinds and accelerating demand from electrification and AI-driven infrastructure kept copper prices at record levels in 2025. As a result, the stock is poised to close the year with gains of over 100%.

Copper prices have climbed by over 40% this year, fuelled by worries about shortages and also supported ‌by a ‌weak dollar and strong gains in other financial markets. Benchmark three-month copper on the London Metal Exchange were in the red at $12,550 a ton in the morning.

Hindustan Copper, India’s only vertically integrated copper producer, has been one of the top beneficiaries of the recent spike in copper prices. Experts suggest that the copper market is in a strong position thanks to rising industrial applications and global electrification trends. Analysts noted that while copper prices tend to be volatile, the broader trend remains positive and bodes well for companies like Hindustan Copper.

Higher realisations from dollar-linked contracts and a depreciating rupee further boost the company’s margin outlook. Dipan Mehta of Elixir Equities told The Economic Times earlier that metal companies, including Hindustan Copper, naturally benefit from these currency movements, as many of their sales are tied to dollar-denominated prices. This has helped improve the overall earnings environment for the firm, leading to higher investor confidence.

With copper demand expected to remain strong due to global electrification, renewable energy deployment, and infrastructure buildout, Hindustan Copper remains well-positioned to benefit from structural tailwinds, say experts.

The supply side has seen a string of setbacks in 2025. Indonesia’s Grasberg underground mine faced halts after a deadly incident, and Chile’s El Teniente suffered tunnel collapses and downtime. Hareesh V of Geojit Financial Services said, “2025 saw an exceptional string of mine setbacks,” reinforcing supply stress and the bullish sentiment.

While the medium-term outlook for copper remains strong, analysts advise caution in the near term.Sachin Gupta, VP-Research at Choice Broking, highlighted that Hindustan Copper has surged over 56% during the last month alone. The Relative Strength Index (RSI) is currently at elevated levels and is showing signs of negative divergence, which could indicate that the stock is overbought and may see some profit booking.

He suggested a “buy on dips” approach for investors looking to enter afresh.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. They do not represent the views of the Economic Times)