Hindalco Industries Ltd. is on brokerages radar, after the company posted that the net profit rose 26.7% at Rs 2,597 crore in the fourth quarter of the previous fiscal.
Consolidate revenue of the aluminum and copper manufacturing advanced by 17.5% quarter-on-quarter for the three months ended March, reaching Rs 78,133 crore in comparison to Rs 66,521 crore.
Hindalco Industries Q4 Result Highlights (Cons, QoQ)
- Profit up 26.7% at Rs 2,597 crore versus Rs 2,049 crore
- One-time loss of Rs 4,171 crore versus Rs 2,610 crore
- Revenue up 17.5% at Rs 78,133 crore versus Rs 66,521 crore
- Ebitda up 25.3% at Rs 10,018 crore versus Rs 7,994 crore
- Ebitda Margin at 12.8% versus 12%
- To pay final dividend of Rs 5 per share
CLSA maintained its Outperform rating and sharply raised its target price on the stock to Rs 1,240 from Rs 1,035. The brokerage said strong India business performance was the key driver behind the earnings beat, although higher costs and hedging losses could partly offset gains from stronger London Metal Exchange prices going forward.
Kotak Securities maintained a more cautious Reduce rating but still raised its target price to Rs 1,100 from Rs 1,000. The brokerage highlighted strong performance across Hindalco's India aluminium and copper divisions, adding that geopolitical tensions in the Gulf region had aided profitability through firmer commodity prices.
Kotak Securities on Hindalco
- Kotak Securities maintains a Reduce rating on Hindalco and has raised its target price to Rs 1,100 from Rs 1,000.
- The brokerage noted that the company delivered a beat across both its India aluminium and copper divisions.
- Kotak expects the India business to continue supporting Novelis in the near term.
- It also highlighted that the ongoing Gulf conflict is aiding performance through firmer commodity dynamics.
- The brokerage expects major India expansion projects to start coming online from FY28.
CLSA on Hindalco
- CLSA maintains an Outperform rating on Hindalco and has raised its target price to Rs 1,240 from Rs 1,035.
- The brokerage said strong performance in the India business drove the earnings beat.
- However, it cautioned that higher costs and hedging losses could partly offset the benefit of stronger LME aluminium prices.
- CLSA added that Novelis continues to remain the key driver of leverage and long-term growth for Hindalco.
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