Copper Rally Fuels Hindustan Copper's Surge: PSU Stock Hits Record High

• Copper prices on the London Metal Exchange (LME) jumped 42% in 2025 and continue to rise, driven by a weak US Dollar and demand from green energy, AI, and defense sectors.
• Global copper production faces challenges, with mine capacity at 28 MT but actual production closer to 23 MT, and an average of 15 years to bring new mines online.
• Hindustan Copper, India's only listed pure copper player, saw its market capitalization exceed ₹70,000 crore, with shares hitting a 20% upper circuit.
• The company plans to expand its mine capacity from 4 MT to over 12 MT with a ₹2,000 crore capital expenditure, projecting 20% volume growth and over 40% margins by FY26.
• With stable production costs and rising copper prices, Hindustan Copper's net profit could potentially increase from under ₹500 crore to ₹2,000-₹3,000 crore.

Why It Matters: Rising copper prices and strong demand are driving Hindustan Copper's stock to record highs, boosting its future profit potential.