Hindustan Copper vis-a vis Hind Zinc – a comparison
Hindustan Zinc (HZL) went for strategic sale by the same NDA Govt in 2002, at Rs. 40.50 per share to Vedanta Group then. Therefater, HZL saw share split from FV 10 to 2, as also, saw 1:1 bonus, on 7th March, 2010, which made 1 share to rise 10 shares now. Effective cost was Rs. 4 per share. HZL has been paying consistenet dividend for the last over 15 years, while paid Rs. 63.80 as dividend in the last 3 years, being 2018 to 2021. This implies share having risen by 90x in last 19 years or so.
Hind Copper (HCL) is tradng at Rs. 151, while HCL can be very well compared with HZL of 2002, in terms of Ore reserve, Paid up equity, Promoter stake, M cap etc. Implying that same rise can be seen in M cap of HCL as well in the next 15-20 years.
HZL M cap was at Rs. 1,800 cr in 2002, which is now at 1.21 lakh crore. This value explosion has happened due to New promoter, capacity having risen by over 8x and removal of PSU Tag.
Can this happen with HCL? Can HCL see strategic sale by the Government?
Keep fingers crossed:)
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