Hindalco Q3 Results Review: Systematix Maintains 'Buy' On The Stock, Lowers Target Price — Here's Why

Hindalco has outlined a capex of Rs 400 billion for India upstream business spanning over three-four years for alumina refinery, aluminium smelter, and copper smelter expansions. .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. .Systematix Research Report.Hindalco Industries Ltd.’s Q3 FY25 consolidated Ebitda of Rs 76.0 billion (+26%/-5% YoY/QoQ), was 11% below our estimate of Rs 85 billion. Segment Ebitda of Rs 81 billion was 5% below our estimate, impacted by weak volumes and margins at Novelis. Novelis reported quarterly shipment of 904kt (-1%/-4% YoY/QoQ), with an adjusted Ebitda of $406/tonne (-19%/-20% YoY/QoQ). India upstream segment Ebitda increased 73%/14% YoY/QoQ to Rs 42.2 billion, with margins averaging at 42% (versus 41%/31% in Q2 FY25/Q3 FY24), driven by lower input costs. The downstream segment reported Ebitda of Rs 1.5 billion (+46%/-3% YoY/QoQ), with Ebitda/tonne at $179/tonne (+31%/+1% YoY/QoQ). The copper segment reported Ebitda of Rs 7.8 billion (+18%/-6% YoY/QoQ). India aluminium upstream, downstream, and copper segment sales volume during the quarter were reported at 338kt (+2%/+3% YoY/QoQ), 99kt (+10%/-4% YoY/QoQ), and 120kt (+1%/+3% YoY/QoQ), respectively. Consolidated Q3 revenue of Rs 584 billion increased by 11% YoY and flat sequentially, was short of our estimates by 4%.Hindalco has outlined a capex of Rs 400 billion for India upstream business spanning over three-four years for alumina refinery, aluminium smelter, and copper smelter expansions. Consolidated net debt as of December 2024 was Rs 418 billion versus Rs 360 billion in Q2 FY25 with India business at a net cash position of ~Rs 19 billion. We maintain Buy rating on the stock based on SOTP FY27E EV/Ebitda with a revised target price of Rs 735/share (Rs 821/share earlier). .Click on the attachment to read the full report:.Hindalco Share Price Rises After Q3 Results, Positive Analysts' Outlook.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 Q3 Results Review: Systematix Maintains 'Buy' On The Stock, Lowers Target Price — Here's Why

The brokerage maintains Buy rating on the stock based on SOTP FY27E EV/Ebitda with a revised target price of Rs 735/share (Rs 821/share earlier).

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