1 week ago
Shares of Hindalco Industries Ltd., the Aditya Birla Group company, will be in focus on Tuesday, November 12, following its upbeat results for the September quarter.
Hindalco's Aluminium upstream business reported its highest EBITDA per tonne in the last 10 quarters, reaching $1,349. The segment's EBITDA was up 79% to ₹3,709 crore supported by lower input cost.
The Copper business also achieved a record quarterly EBITDA, at an all-time high of ₹829 crore, up 27%. Quarterly revenue for the segment rose 5% to ₹13,114 crore.
Nearly 80% of the 29 analysts that have coverage on Hindalco have maintained their 'buy' recommendation on the counter after its September quarter earnings.
Global brokerage firm CLSA has reiterated its 'buy' rating on Hindalco, with a price target of ₹800 per share, which implies a potential upside of 22% from Friday's closing levels.
According to CLSA, Hindalco posted robust domestic results, reporting an EBITDA of ₹4,300 crore, which exceeded estimates by 35%, with solid performance across various segments.
Aluminum EBITDA per ton increased by $96 quarter-on-quarter to $1,419, despite a $140 per ton decline in LME prices.
Investec has maintained a 'buy' rating on the stock, with a price target of ₹860. This is the third-highest price target for the stock on the Street.
Hindalco’s operational performance exceeded expectations. The company is awaiting further details on additional capex plans.
Hindalco's India operations are in a strong position regarding bauxite lease expiries compared to local competitors.
Hindalco's India business surpassed estimates, offsetting the earlier disappointment from Novelis. The profit beat was driven by higher other income due to the sale of land in Maharashtra’s Kalwa.
The key highlight was a strong segmental performance:
Segmental EBITDA versus poll
Aluminium: ₹3,863 crore as against a CNBC-TV18 poll of ₹3,274 crore.
Copper: ₹829 crore against a CNBC-TV18 poll of ₹628 crore.
“During the quarter, we made significant progress across our growth projects in India Business and Novelis. Our company’s robust cash flow generation enabled us to maintain a consolidated net debt-toEBITDA ratio below 1.2 times," said Satish Pai, Managing Director, Hindalco Industries.
Of the 29 analysts that have coverage on Hindalco , 23 have a 'buy' rating, while five of them have a 'sell' and one says 'hold'.
Shares of Hindalco settled 0.71% higher at ₹655.05. The stock is down 15% from its recent peak of ₹772. The recent decline has trimmed Hindalco's year-to-date gains down to 7%.
