Copper—The 'New Gold' In AI Age? Market Expert Sees Hindustan Copper As Future Multibagger Stock
Ambareesh Baliga believes it makes sense to invest in copper, which may deliver strong returns in the next two to three years.
As artificial intelligence and data centres continue to take over the world, copper could emerge as the new gold for the industry, according to independent market analyst Ambareesh Baliga, who believes Hindustan Copper could potentially deliver multi-bagger returns over the next couple of years.
"The demand is going to increase for copper, given the AI and data centre boom. There have been talks that copper could be the new gold, from an industrial point of view," he told NDTV Profit.
Baliga's statement comes on the back of a recent drive in optimism in copper, with futures trading near range highs. Copper prices have seen an uptick on the back of various global factors, including Trump Tariffs and supply constraints.
The frenzy over copper in India has been further accentuated by Hindustan Copper's recent announcement of capacity ramp-up, with the company looking to increase its ore output threefold from 3.47 million tonnes per annum to 12.2 million tonnes by FY31.
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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.
The views and opinions expressed by experts and investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
