Hindustan Zinc Ltd vs Hindustan Copper: Which Stock is Better 

Company Overview of Hindustan Copper Ltd

Hindustan Copper Limited is an Indian company that is involved in all aspects of copper production. The company’s main focus is on mining and processing copper ore. Its activities include exploring, mining, beneficiation, smelting, and refining of copper and copper ore. 

The company operates copper mines and concentrator plants in Malanjkhand Copper Project in Madhya Pradesh, Khetri Copper Complex in Rajasthan, and Indian Copper Complex at Ghatsila in Jharkhand. 

Company Overview of Hindustan Zinc Ltd

Hindustan Zinc Limited, an India-based company, is involved in mineral exploration, extraction, processing, and the manufacturing of metals and alloys. The company’s product range includes zinc, lead, silver, commercial power, and alloys. Hindustan Zinc Limited operates in segments such as Zinc, Lead, Silver & others, and Wind energy. 

The company runs five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants, and four captive solar plants in Rajasthan. 

The Stock Performance of Hindustan Copper

The table below displays the month-by-month stock performance of Hindustan Copper Ltd for the past year.

The Stock Performance of Hindustan Zinc Ltd

The table below displays the month-by-month stock performance of Hindustan Zinc Ltd for the past year.

Fundamental Analysis of Hindustan Copper Limited

Hindustan Copper Ltd (HCL) is a prominent public sector company in India, engaged in the production of copper and its related products. Established in 1967, the company is a key player in the mining industry, with a focus on sustainable development and environmental responsibility. HCL operates several mining projects across the country, contributing significantly to the nation’s copper supply.   

The close price is ₹196.24 with a market capitalization of ₹18,976.88 crore. The dividend yield stands at 0.47%, while the one-year return is -45.16%, the six-month return is -37.13%, and the one-month return is -11.80%. The five-year CAGR is 51.30%, marking a 111.88% decline from the 52-week high, with a five-year average net profit margin of -0.94%.

• Close Price ( ₹ ): 196.24
• Market Cap ( Cr ): 18976.88
• Dividend Yield %: 0.47
• 1Y Return %: -45.16
• 6M Return %: -37.13
• 1M Return %: -11.80
• 5Y CAGR %: 51.30
• % Away From 52W High: 111.88
• 5Y Avg Net Profit Margin %: -0.94 

Fundamental Analysis of Hindustan Zinc Limited

Hindustan Zinc Limited (HZL), a subsidiary of Vedanta Resources, is a leading zinc producer in India and the world. Established in 1966, the company is headquartered in Udaipur, Rajasthan, and plays a crucial role in the mining and production of zinc, lead, and silver. HZL operates several mines and smelting facilities across India, making it a key player in the non-ferrous metals industry.  

The stock closed at ₹400.60 with a market cap of ₹169,266.28 crore and a dividend yield of 3.25%. Its one-year return is -0.17%, six-month return is -21.27%, and one-month return is -7.38%. Over five years, it has a CAGR of 19.34% and is 101.62% below its 52-week high.

• Close Price ( ₹ ): 400.60
• Market Cap ( Cr ): 169266.28
• Dividend Yield %: 3.25
• 1Y Return %: -0.17
• 6M Return %: -21.27
• 1M Return %: -7.38
• 5Y CAGR %: 19.34
• % Away From 52W High: 101.62  

Financial Comparison of Hindustan Copper and Hindustan Zinc Ltd

The table below shows a financial comparison of Hindustan Copper Ltd and Hindustan Zinc Ltd.

Points to be noted:

• (TTM) Trailing 12 Months: Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of Hindustan Copper and Hindustan Zinc Ltd

Hindustan Copper offers steady dividends, with ₹0.92 per share in May 2024, while Hindustan Zinc Ltd provides significantly higher interim dividends, such as ₹19 in August 2024. Both companies demonstrate strong dividend payout histories. Check the table for complete details. 

Advantages and Disadvantages of Investing in Hindustan Copper

Hindustan Copper Ltd

The primary advantage of Hindustan Copper Ltd lies in its dominant position in India’s copper mining industry. As a state-owned company, it controls substantial copper reserves and offers a critical supply of copper for various industrial applications, benefiting from government support.

1. Dominant Market Position: Hindustan Copper is the largest copper producer in India, controlling significant copper reserves in the country. This position allows the company to cater to domestic demand and maintain a strong market presence in the metals sector.
   
2. Government Backing: As a public sector undertaking, Hindustan Copper enjoys strong support from the Indian government. This backing offers financial stability and access to policies that promote growth, making it a less risky investment compared to privately owned competitors.
   
3. Strategic Location of Mines: Hindustan Copper’s mines are strategically located across India, ensuring easy access to raw materials and reducing transportation costs. This geographic advantage enhances its operational efficiency, contributing to lower production costs and competitive pricing.
   
4. Focus on Expansion and Modernization: The company has been modernizing its mining operations and increasing production capacity. It aims to improve its operational efficiency, reduce costs, and cater to rising demand by upgrading existing mines and exploring new reserves.
   
5. Diversification into By-products: Hindustan Copper also produces by-products like gold and silver during its copper mining operations. This diversification allows the company to generate additional revenue streams, making it more resilient to fluctuations in copper prices and enhancing its overall profitability.

The main disadvantage of Hindustan Copper Ltd lies in its dependence on the copper mining industry, which is subject to fluctuations in global copper prices. This makes the company vulnerable to market volatility, potentially affecting its profitability and long-term financial stability.

1. Dependence on Copper Prices: Hindustan Copper’s revenue is heavily reliant on copper prices, which can be volatile due to global supply-demand dynamics and geopolitical factors. A significant decline in prices could severely impact its financial performance.
   
2. Environmental and Regulatory Challenges: As a mining company, Hindustan Copper faces increasing regulatory scrutiny and environmental concerns. Strict regulations on mining practices, emissions, and land reclamation could raise operational costs and impact production timelines, limiting growth.
   
3. Aging Infrastructure and Technology: Some of Hindustan Copper’s mining operations rely on outdated equipment and technology. This could lead to inefficiencies, higher maintenance costs, and reduced productivity, hindering its ability to compete with more technologically advanced players in the industry.
   
4. Geopolitical and Market Risks: Hindustan Copper operates in a global market with exposure to international geopolitical risks. Issues such as trade disputes, regulatory changes, or political instability in key markets could disrupt its supply chain and negatively impact profitability.
   
5. Limited Product Diversification: The company mainly focuses on copper production, which limits its ability to weather industry-specific downturns. Unlike competitors with more diversified portfolios, Hindustan Copper’s financial stability is more vulnerable to copper price volatility, reducing its risk management capabilities.

Advantages and Disadvantages of Investing in Hindustan Zinc Ltd

Hindustan Zinc Ltd

​The primary advantage of Hindustan Zinc Ltd lies in its position as the world’s second-largest integrated producer of zinc, lead, and silver. With a fully integrated business model encompassing mining, smelting, refining, and captive power generation, the company maintains a competitive edge through cost efficiency and operational scale.​ 

1. Market Leadership: Hindustan Zinc holds approximately 75% market share in India’s primary zinc industry and is among the top global producers of silver, enhancing its influence in the metals market. ​  
2. Sustainable Practices: Hindustan Zinc is committed to sustainability, aiming to transition to renewable energy sources over the next five to seven years to reduce its carbon footprint. 
3. Expansion Plans: The company plans to double its production capacity to 2 million tonnes by 2028, focusing on capturing the Middle East market and replacing European smelters. 
4. Financial Strength: Hindustan Zinc maintains a strong financial position with substantial reserves and surplus, supporting its growth initiatives and shareholder returns.

The main disadvantage of Hindustan Zinc Ltd lies in its reliance on the zinc and lead markets, which are exposed to fluctuations in global commodity prices. A downturn in these markets could significantly impact the company’s profitability and long-term growth prospects.

1. Commodity Price Volatility: Hindustan Zinc’s revenue is largely dependent on zinc, lead, and silver prices. Any significant decline in global demand or prices for these metals can adversely affect profitability, as the company’s operations are directly linked to commodity market conditions.
   
2. Environmental and Regulatory Risks: Mining operations are subject to strict environmental regulations. Hindustan Zinc must continuously manage its environmental impact, ensuring compliance with local and international standards. Any new regulatory policies could increase operational costs or delay projects, reducing profitability.
   
3. Geopolitical Risks: Hindustan Zinc’s operations are spread across various regions, including India and other countries. Political instability, changes in government policies, or regulatory changes in these regions could disrupt operations, leading to increased costs or delays in project implementation.
   
4. Limited Diversification: While Hindustan Zinc is a leader in zinc production, its heavy focus on zinc and lead mining limits revenue diversification. Economic or market shifts that reduce demand for these metals could make the company vulnerable to financial instability.

How to Invest in Hindustan Zinc and Hindustan Copper Stocks?

If you’re interested in investing in Hindustan Zinc and Hindustan Copper Stocks, you can do so effortlessly through Alice Blue, which offers zero brokerage on equity delivery trades, allowing you to purchase stocks without any additional charges.

Step 1: Open a Demat & Trading Account

• Visit the Alice Blue website.
• Click on “Open Demat Account” and complete the registration process.
• Upload your PAN, Aadhaar, and bank details for verification.

Step 2: Fund Your Trading Account

• Log in to Alice Blue and navigate to the Funds section.
• Deposit money using UPI, Net Banking, or NEFT/RTGS for seamless transactions.

Step 3: Search & Analyze Hindustan Zinc and Hindustan Copper Stocks

• Use the search bar to find Hindustan Zinc and Hindustan Copper Stocks.
• Review the stock’s market price, charts, and company insights before making a decision.

Step 4: Place Your Buy Order

• Click “Buy” and select either a Market Order (instant purchase) or a Limit Order (buy at a specified price).
• Enter the quantity and confirm your order to complete the purchase.

Hindustan Copper vs. Hindustan Zinc – Conclusion

Hindustan Copper Ltd is a leading player in copper mining in India. Although it offers steady dividends, its financial performance is heavily reliant on copper prices, which makes it vulnerable to market fluctuations.

Hindustan Zinc Ltd, a major zinc producer, enjoys strong profitability with higher dividend payouts. Its diversified portfolio and large market share make it more stable and attractive for long-term investors.

Hindustan Copper vs. Hindustan Zinc – FAQ

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time. The securities quoted are exemplary and are not recommended.