Hindalco - Capacity Expansion To Drive Performance: Motilal Oswal

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 operation is a net debt free vertical and the company’s consolidated net debt/Ebitda improved to 1.43 times (1.66 times in Q2 FY24). Though the ongoing capex at Novelis would augment Hindalco as the global leader in beverage cans and automotive flat rolled products segments, any additional extension to the capex timeline or an increase in capex would exert further pressure on the company’s cash flow. Its capex would be a key monitorable for any further cost revisions or delays. Volume growth across geographies is expected to remain stable going forward. Hindaloc has already secured long-term contracts from marquee customers for the Bay Minette facility, offering Novelis future revenue visibility. The company expects Novelis to post Ebitda/tonne of $600 in the medium to long term. We reiterate our 'Buy' rating on Hindalco with an SOTP-based target price of Rs 600. The stock is trading at 5.4 times FY26E enterprise value/Ebitda and 1.1 times FY26E price/book..Click on the attachment to read the full report:.Updater Services - Diversified Play On High-Growth Business Services: Motilal Oswal Initiates Coverage.DISCLAIMERThis 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.

Hindalco - Capacity Expansion To Drive Performance: Motilal Oswal

Novelis on track to achieve Ebitda/tonne of $525 by Q4 FY24; mid-to-long term Ebitda/tonne guidance stands at $600

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