- 09 Dec 2024
- ICICI Securities
ICAI EXPECTS INDIA COPPER DEMAND TO GROW 10%-13% YOY IN H2FY25
News: As per media sources, ICAI India (International Copper Association India) expects domestic copper demand to grow by 10% to 13% YoY in H2FY25. Additionally, it anticipates similar growth rate for full year FY25.
Views: The expected strong demand for copper bodes well for domestic players such as Hindalco, which is one of the leading producers of refined copper having smelter capacity of ~540k. The company is set to expand copper smelter capacity by ~300k tons, thereby taking total capacity to ~800k tons in next 3 to 4 years. This aims to capitalize on growing opportunities given the domestic copper demand is set to double from ~1MT in FY23 to ~2 MT by FY33. Notably, it expands its downstream portfolio by establishing Inner Grooved Copper Tube facility with a capacity of 25 KTPA, catering to air conditioning and refrigeration applications. We remain optimistic about the stock, supported by strong demand for Aluminium and copper metal due to its incremental application in automobile and renewable spaces, strategic capacity expansion at Novelis and Hindalco and controlled leverage on B/S with Debt to Equity at ~0.5.
Impact: Positive