.png?downsize=773:435 "Hindalco's Capacity Expansion To Drive Next Leg Of Growth, Says Motilal Oswal; Maintains 'Buy' Rating")
Hindalco India's capex plan involves Rs 450 billion investments to expand aluminum and copper capacities, with key projects like the Aditya Alumina Refinery, copper recycling plant, and smelter expansions set to drive growth. The company is strategically aligning these investments with resource security enhancements through coal mine acquisitions, while prioritizing value-added products and sustainability. By FY28-29, these expansions will position Hindalco as a leader in India's aluminum and copper markets, capitalizing on strong domestic demand and operational efficiencies.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Hindalco Industries Ltd.'s Indian operations are net debt-free, and the consolidated net debt/Ebitda stood at 1.33 times as of Dec'24 versus 1.43x in Dec'23. The announced/ongoing expansion is set to position Hindalco as the global leader. Novelis has already secured long-term contracts from marquee customers for Bay Minette, ensuring future revenue visibility.
With a larger scale and operational efficiency, margins are expected to expand over the medium to long term. We reiterate our Buy rating on Hindalco with SOTP-based valuation, arriving at a target price of Rs 770.
Key risks:
Delays in capex to put pressure on cash flow;
Rise in scrap prices impacting margins;
US tariffs lead to demand and supply disruptions.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
