Meanwhile, India’s push into EVs, renewable energy, and data centre construction is expected to increase demand for copper, as admitted by Hindustan Copper management in recent media interviews.
This sentiment has been reflected in Hindustan Copper’s share price as well, with the stock surging considerably ever since the expansion announcement.
Over a one-month period, the stock is up by more than 26%.
Despite this surge, Ambareesh Baliga believes it makes sense to invest in Hindustan Copper, which he believes may deliver strong returns in the next two to three years.
“Even at current levels, it makes a lot of sense [to invest]. I think the upside for copper, at least from a 2-year perspective, could be a multi-bagger,” he added.
However, over a one-year period, Hindustan Copper shares have fallen almost 10% and currently trade with a relative strength index of over 70, which suggests the stock could be in an overbought territory.