Investing in Copper theme-Hindustan Copper Ltd

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https://youtu.be/DnVbWV3XMGc

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और दुसरो को भी भेजीये,  जो नीवेष करने के लिए इच्छुक है

Why I bought Hindustan Copper:

Last time we spoke on technical Breakout at 95 for short term to medium term gains in Hindustan Copper.  One can go through the link if interested

http://jttime.blogspot.in/2017/12/breakout-in-hind-copper.html

Here we I am discussing exactly why I bought Hindustan Copper even before that Breakout

To profit from Commodity,  one need to understand Commodity sector which always works on cycle. Rising copper prices is the primary trigger.  Once trend is confirmed,  metal Miner starts opening up shut down mines or expansion is planned for taking advantage of price rise. This time, copper cycle is supported by EV boom which makes it lucrative for this uptrend to continue for long term. Whatever we are buying now is actually bottom price. One can also look at Vedanta (Copper Miner in Africa and smelter in India). Though Vedanta have additional advantage of Oil &  gas,  Iron Ore,  Aluminum etc. It can be discussed separately.


Latest Update on Hindustan Copper:
Kendadih Copper Mine at Ghatsila, Jharkhand has been reopened on 11.12.2017 upon commencement of development activities at the mine


Keep following check lists handy for your investment rationale in Hindustan Copper.

• Copper prices up from 4000 to 7500 within few months and still uptrend
• Hindustan Copper have planned 3 times capacity expansions by 2018-2019
• Only Miner owning all Copper mines in India

Also, I would like you all to please go through following links to understand Copper theme(Not Indian but worth reading)

https://katusaresearch.com/copper-stocks-easily-rise-10-fold-current-levels/




Already ran from 60 to 100 but still long way to go

Happy Investing 💸💸💸💸💸💸💸

RCI Industries - Growth pick

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Company in discussion is recommended by my stock market guru Research Wings.

Rationale for picking this story:

Company who came from BSE SME to BSE Main and now from low margin trading firm to manufacturing firm, RCI industries have exhibited excellent growth path.

On going 80 Crores capex for enhancing capacity of which 49 Crores met from preferential allotment from Promoters and remaining out of internal accruals

Talking about 3 divisions of the company :

Copper trading - 

Low margins business

Round products - 

Medium margin business, current capacity at 24000MT from 20000MT in FY2017

Flat Products - 

High margin business,  acquired 2400MT capacity Devi Metals,  ongoing capex for 6000MT by FY2018 &  24000MT by FY2019

Company focus is shifting from trading to high margin flat products manufacturing business and hence highlighted


Previous closing price is ₹249.45 and I bought today at ₹246 in my personal portfolio.


Comparing it with peers Precision Wires and Ram Ratna wires(Don't go with peers given on screener.in or other websites as automated websites will give peers in commodity trading and as discussed above, RCI has now become Copper ancillary manufacturer as primary business) ,  inspite of excellent growth on cards,  it's still undervalued.  Such stocks are typical hidden gems,  otherwise growth stocks usually demands higher valuation if information is widespread in the market.


Checking the company on charts

As We can see from the chart,  on account of previous growth,  stock has given good rally after getting in from BSE SME to BSE Main and is in consolidation for complete year when capex is ongoing.  This chart pattern looks similar to cup and handle where rally is succeeded by consolidation (cup)  and on the verge of Breakout (handle)


Recent Volumes spurt also supports the price trend.  Now only wait is for a massive Breakout at 52week high after which many analysts will start giving calls but we have grabbed it when it's sleeping.