Shares of Hindustan Copper gained as much as 9.8% on Tuesday, marking its biggest single-day gain since December 2023. The stock is also out of the F&O ban in today’s trading session, which means new positions can be taken in the stock.The stock also surged after global Copper prices traded near a 15-month high as supply tightened and global manufacturing picked up.

Prices of Copper have risen almost 10% this year as disruptions at major mines threaten refined metal production at Chinese plants, that account for more than half of the world’s supply, according to a Bloomberg report.

In an interaction with CNBC-TV18 on April 2, Rakesh Arora of GoIndiaStocks.com said that he would advise investors to not waste time on Hindustan Copper, citing that the company’s valuations are unreasonable.At current levels, the stock is trading at a current-year price-to-earnings multiple of 118.6 times, compared to its five-year average of 49.89 times.

On the charts, while the stock trades above all of its key moving averages, the Relative Strength Index (RSI) of the stock is now at 77, which means the stock is in overbought territory. An RSI reading above 70 indicates that the stock is overbought.

Hindustan Copper is the only listed pure play stock on copper prices in India.

While 66% stake in this PSU is held by the government, LIC holds a 8.17% stake. Quant Smallcap Fund and SBI PSU Fund hold a 1.76% and 1.23% stake in the stock respectively.

Shares of Hindustan Copper are now trading 10% higher at ₹364.45. The stock is already up 35% so far in 2024, while over the last 12 months, the stock is up 262%.