Madhav Copper vs Hindustan Copper: Which Copper Stock Is Better?
Copper prices are rising globally, and Indian copper stocks are back in focus. While Hindustan Copper has delivered strong long-term returns as a PSU mining major, Madhav Copper has attracted attention as a small-cap recovery story. But which stock actually makes sense at current levels? The key question is simple — should you choose a small-cap like Madhav Copper or a large PSU like Hindustan Copper?
Company Profile: Difference in Business Model
Madhav Copper
Madhav Copper is a small-cap copper products company.
It mainly manufactures copper strips, rods, wires, and flats.
Its customers include:
- Electrical equipment manufacturers
- Transformer makers
- Industrial users
The business is highly dependent on copper price cycles.
Because of its small scale, the company has limited pricing power and higher volatility.
Hindustan Copper
Hindustan Copper is India’s only integrated copper PSU.
It operates across the entire value chain:
Mining → Concentration → Smelting → Refining → Copper products
Its product portfolio includes:
- Copper cathodes and rods
- Sulphuric acid
- Precious metals
The company supplies to power, railways, defence, infrastructure projects, and also exports.
Being a strategic PSU, it enjoys government backing and long-term relevance.
👉 This is where the direction of both companies clearly diverges.
Financial Comparison
Revenue Trend
| Company | Revenue Movement |
|---|---|
| Madhav Copper | FY21 ₹384 Cr → FY23 almost zero → FY25 ~₹125 Cr |
| Hindustan Copper | FY21 ₹1,822 Cr → FY25 ₹2,148 Cr |
Madhav Copper’s revenue has been highly volatile and is still in recovery mode.
Hindustan Copper shows a stable and gradually growing top line.
Profit Trend
| Company | Profitability |
|---|---|
| Madhav Copper | Losses in FY22–23, recovery in FY24–25 but inconsistent |
| Hindustan Copper | Consistently profitable, margins improved with copper rally |
Balance Sheet and Valuation Comparison
| Parameter | Madhav Copper | Hindustan Copper |
|---|---|---|
| Market Capitalisation | ~₹185 Cr | ~₹51,500 Cr |
| P/E Ratio | ~53 | ~90 |
| Debt to Equity | ~0.87 | ~0.05 |
| ROE | ~7% | ~19% |
Key takeaway:
- Madhav Copper carries higher debt pressure
- Hindustan Copper has a much stronger balance sheet
Share Price Performance Snapshot
Madhav Copper
- 1 Month: Sharp rise (momentum-driven)
- 1 Year: ~21%
- 5 Years: Weak and highly volatile
The rally is largely driven by speculation and turnaround expectations.
Hindustan Copper
- 1 Month: ~57%
- 1 Year: ~114%
- 5 Years: ~735%
Here, the rally is supported by fundamentals, copper cycle strength, and PSU re-rating.
Why Are Copper Stocks Rallying Now?
Common Factors
- Strong global copper prices
- Demand from EVs, renewable energy, power grids, and defence
Extra Support for Hindustan Copper
- PSU re-rating theme
- Domestic mining expansion expectations
- Strategic importance of copper
Extra Support for Madhav Copper
- Low base effect
- Thin liquidity and sudden buying
- Short-term trader interest
Risk Comparison
Risks in Madhav Copper
- High small-cap volatility
- Lack of earnings consistency
- Debt pressure
- Sharp downside if copper prices fall
Risks in Hindustan Copper
- PSU-related execution delays
- High valuation at current levels
- Dependence on commodity cycles
Our View / Analysis
In our view, Hindustan Copper looks like a more stable and safer option for long-term investors, especially for those who want exposure to the copper super-cycle.
Madhav Copper may suit short-term or high-risk investors, but volatility is likely to remain high.
If the goal is copper exposure, quality, scale, and balance sheet strength matter more than short-term momentum.
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Disclaimer
This information is provided for educational purposes only. It does not constitute investment advice. Stock market investments involve risk. Please consult a qualified financial advisor before making any investment decisions.
Sumit Ghatala is a stock market researcher and financial content writer with over 8 years of experience tracking Indian equity markets, corporate earnings, and sectoral trends. He focuses on analysing company fundamentals, quarterly results, and broader market movements to provide readers with clear and structured insights.
Sumit’s work is aimed at simplifying complex market data and helping retail investors understand risks, opportunities, and long-term perspectives through balanced and reader-friendly analysis.