Hindalco share price target raised by Kotak who calls concerns 'misplaced' — Should you buy?

Shares of Aditya Birla Group's Hindalco Industries Ltd. gained on Thursday, February 27, after brokerage firm Kotak Institutional Equities upgraded its coverage on the stock and projected a 17% upside.

The brokerage upgraded its rating on Hindalco to "buy" from its earlier rating of "reduce" and increased its price target to ₹725 from ₹640 per share.

It also increased its earnings-per-share (EPS) estimates for the stock for financial year 2026 and 2027 by 2.5% and 3.2%, respectively.

The brokerage listed five reasons for the upgrade:

Misplaced concerns make risk-reward attractive
Scrap spreads have bottomed in the third quarter of the current financial year and are unlikely to worsen further
Pass-through sales agreement at Novelis would protect against potential tariffs frmo the US
Novelis should deliver a 6% Compounded Annual Growth Rate (CAGR) in volumes over the financial year 2025-2028
The company's upcoming expansion projects should put the India business back on the growth path

Of the 30 analysts that have coverage on the stock, 27 of them have a 'buy' rating, while the remaining have a 'sell' rating.

Hindalco shares gained 1.9% to hit an intraday high of ₹631.7 apiece on Thursday, February 27. The stock later pared gains and was up 0.43% at ₹622.1 apiece at 11.10 am. It has gained 22.05% in the past year.

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