HINDUSTAN COPPER

Shogun of Indian copper producers

Hindustan Copper is a Schedule ‘A’ mini-ratna Central public sector enterprise under the administrative control of the Ministry of Mines. Incorporated in 1967, HCL is the only vertically integrated, government-owned producer of copper in India engaged in a wide spectrum of activities ranging from mining, beneficiation, smelting and refining to continuous cast rod manufacturing. This is the only company in India engaged in copper ore mining and holds all the mining leases for copper ore in the country.

The company’s current focus is on exploration, mining and beneficiation of copper ore to produce copper concentrate. HCL operates copper mines at Malanjkhand (MP), Khetri (Rajasthan) and Ghatsila (Jharkhand). It has a secondary smelter and refining facilities at Jhagadia (Gujarat) and a continuous cast copper wire rod plant at Taloja (Maharashtra). Operations at the Jhagadia and Ghatsila facilities have been suspended since 2019 due to business considerations. The operations at the Taloja plant are currently limited to thirdparty tolling activities.

Listed on both BSE and NSE, the company’s paid up capital is Rs 483.51 crore. The government holding is 66.14 per cent, and the share price (face value Rs 5) is quoted around Rs 325.

On the financial front, the company’s performance, which was fluctuating earlier, has started improving. The sales turnover dropped from Rs 1,489 crore in fiscal 2014 and declined to Rs 832 crore in fiscal 2020, but thereafter has been growing year after year to cross Rs 2,000 crore in fiscal 2025. Likewise, the operating profit of Rs 505

crore earned during fiscal 2014 turned into a loss of Rs. 242 crore in fiscal 2020. But thereafter the company reentered the profit zone with Rs 738 crore in fiscal 2025. Likewise, at net level the profit earned in fiscal 2014 turned negative with a loss of Rs 569 crore in fiscal 2020. But thereafter it again turned positive with net profit reaching Rs 469 crore in fiscal 2025. Going ahead, this positive trend is expected to continue with a steady uptick in sales and profits. Consider:

FUTURE SURGE

• The company is all set to go from strength to strength. Production volumes are expected to shoot up more than three and a half times to 12.2 million tonnes by 2031, driven by the extension of mining leases. On the other hand, global copper supply growth is expected to be muted given operational disruptions across major copper-producing regions and rising social environmental awareness, driving lead time to develop a new copper mine to 15-17 years. As the demand for copper is expected to increase, driven by new age applications such as RE, digital, infrastructure, EV, AI data centre and advanced manufacturing, domestic demand is expected to more than double over the next decade.
• Well-known brokerage house Anand Rathi foresees 25.3%/26.8%/ 33% revenue, EBITDA/PAT/CAGR over fiscal years 2025-2031. Production, which stood at 3.47 million tonnes in fiscal 2025, is expected to surpass 12 million tonnes in 2031. For multiple years in the recent past, production was almost stagnant due to multiple regulatory delays and closure of key mines in Jharkhand. However, post-addressing these challenges, it is on track to surpass 12 million tonnes of ore production by fiscal 2031. The company plans to gradually ramp up the volume from its flagship mine, Malanjkhand Copper Project (MCP), to the rated capacity of 6 million tonnes. Experts believe HCL has significant potential to reopen several of its previously operational mines at Jharkhand, Rajasthan and MP, which could further augment long-term production viability.
• The company is a front-runner in global capacity addition. Rising socio-environmental awareness has driven average global lead time to develop a new greenfield copper mine to ~15-17 years. Further, operational disruptions across major copper-producing regions like Chile, the DRC and Indonesia have exacerbated the supply-side challenges and delayed recovery in global copper output. In an environment where companies are factoring in such delays and incidents as a ‘disruption allowance’, HCP stands out as one of the few entities globally with a clear and executable roadmap for capacity expansion, which improves its strategic positioning in the global copper supply chain.
• Domestic demand for copper is expected to surpass 2.5 million tonnes over the next decade driven by transportation (8% CAGR), urbanization (9% CAGR), renewable/clean energy (9% CAGR), Internet of Things (8%) and new age sectors (8.5%). And global copper demand is expected to increase to 37 million tonnes by 2035. HCL will be one of the major beneficiaries of this rise in demand. In fact, the company is a front-runner in global copper capacity expansion. After this ramp-up, revenue and EBITDA are expected to increase four-fold to Rs 80.1 billion and Rs 30.7 billion by fiscal 2031. Research analysts at Anand Rathi believe the company deserves premium valuation, given its industry-leading EBITDA margins, ROE and high growth potential.
• The company's long-term growth trajectory remains compelling. It has delivered a 26.62% return year to-date, significantly outpacing the Sensex's 9.08% return over the same period. Over the past decade, the stock has generated a cumulative return of 477.53% - more than double the Sensex's 229.48%. This sustained performance is underpinned by the company's strategic positioning within the non-ferrous metals sector and its operational efficiencies.
• HCL is aggressively expanding its mining capacity from its current level of 4 mtpa to 12.2 mtpa by 2030- 31. This includes expanding existing mines, re-opening closed mines and developing new ones like the underground mine at the Malanjkhand Copper Project (MCP). The company also has plans to ramp up production, with reports indicating a partnership with Cadence to achieve its production targets.

DEBTS DOWN

• The company's financial position is strong, with reserves at the end of March 31, 2025 standing at Rs 2,504 crore -- over five and a half times its equity capital of Rs 484 crore. The company has been on a strategic track to steadily reduce its debt burden. It has cut down its borrowings from Rs 156 crore in fiscal 2020 to Rs 107 crore in fiscal 2025. Little wonder that its interest burden has slumped from Rs 62 crore in fiscal 2021 to just Rs 8 crore in fiscal 2025. At present, its debt to equity ratio (average of 0.06 times) indicates a conservative capital structure and limited financial risk Shares of the company are quoted around Rs 325. Several research analysts have set a target price of Rs 450. Discerning investors can certainly include the stock in their portfolio with a long-term perspective.

STL NETWORK

Bright future despite initial financial woes

STL Network, operating under the Investa brand, is a digital infrastructure and IT services provider catering to telcos, government, defence and enterprises across India and the UK. Born after the demerger of the global services business of Sterling Technologies Ltd in March 2025, and styled STL Network, it specialises in services like fibre centres, cyber security and managed services for enterprises, telcos and governments. The company is headquartered in Pune and has another office in Gurugram. It is engaged in businesses like designing, building and management of digital infrastructure and IT services.

STL’s performance on the financial front is a mixed one. For its first year ended March 2025, the company earned an operating profit of Rs 74 crore on a sales turnover of Rs 1,180 crore. The profit at net level works out at a loss of Rs 32 crore. In Q2FY2026, the company’s revenues have dropped around 36 per cent over the same quarter last year to Rs 231.94 crore. And it has recorded a net loss of Rs 19.29 crore as compared to a profit of Rs 1.78 crore in the same quarter last year. EBITDA during the quarter fell to Rs 7.59 crore. These figures indicate a substantial decline in profitability in Q2FY2026. Despite this, prospects for the company going ahead are quite promising. Consider:

FUTURE BRIGHT

• Though STL Network plunged into the red with a loss during Q2 of fiscal 2026, some analysts term it a temporary affair and highlight a long- term position trend with expected revenue CAGR and improving profit margins driven by growth in optical fibre (OFC) volumes and a shift in the services business strategy
• The company is an offshoot of Sterling Technologies Ltd (STL), a global company that provides advanced optical and digital network solutions. The company offers a range of products and services for building digital infrastructure, including fibre connectivity, data centre solutions, 5G network solutions, and cyber security services for telecom operators, cloud providers and large enterprises. The parent company is a multinational entity. It has manufacturing facilities in North America, Europe and Asia and its solutions are delivered in over 100 countries. STL has demerged its services business and styled it STL Network Ltd, which is listed on both BSE and NSE. This exercise has been done to enable focused growth in optical networking and digital infrastructure. The services business will now operate under the brand name 'Inventa' through the newly formed STL Network Ltd. According to the STL management, the decision to separate the services business aligns with STL's longterm strategy of forming highly focused and agile organisations. STL Network will continue to expand its expertise in building large-scale digital ecosystems, particularly in India and the UK. Going ahead, STL Network will strengthen its digital infrastructure and services portfolio catering to enterprises, telecom operators, cloud service providers and government projects. The Rs 2,600-crore Bharat Net project in Jammu and Kashmir will now be part of STL Network, reinforcing its role in large-scale digital transformation initiatives.

PLUM CONTRACT

• The company has won a Rs 359 crore data centre infrastructure contract from Power Grid Teleservices Ltd - a wholly owned subsidiary of PGICIL. The order involves designing, building and maintaining a tier I & II data centre at Manesar, along with a disaster recovery data centre and scalable IaaS solutions. The deal significantly enhances STL Network's digital infrastructure portfolio and signals strong demand for cloud and disaster recovery services. The acquisition of such a prestigious contract at the outset of its career will certainly enhance the stature of the new company.
• The company has planned to raise Rs 300 crore through an issue of non-convertible debentures in one or more tranches through private placement. This fundraising could provide it with additional capital for various corporate purposes.
• A major activity of the company is data centre solutions. India's data centre prospects are extremely positive, driven by significant investment, a surge in demand from AI and 5G and the government initiatives.
• Promoting digital sovereignty and data localisation. The company is projected to grow from around 1.6 GW in 2024 to potentially 9 GW by 2032, suppored by an estimated US$ 20-25 billion in new investments by 2030. Primarily in Mumbai, Chennai and emerging hubs like Hyderabad and Pune. Key growth drivers for data centre are (a) Artificial Intelligence (AI) (b) PG rollout (c) Digital sovereignty and localization and (d) Cloud computing. The market and investment outlook is robust. The sector is expected to attract substantial investment with estimates of US$ 20-25 billion in new capital by 2030. STL Network is at a nascent stage and will take some time to enter a speedy growth path. The stock price is hovering between Rs 22 and Rs 24. But the long-term prospects are robust as the future outlook for the company is buoyant. Investors who have a lot of patience and who are ready to wait for 5 to 7 years can certainly add this stock in their portfolio.