Hindalco Shares Up 3% As Brokerages Raise Price Target

Brokerages maintained their "buy" calls on Hindalco Industries after the company posted strong results for the quarter that ended in March 2024. 

What Happened: Hindalco Industries reported a 31.6% YoY jump in consolidated net profit to  ₹3,174 crore in the March quarter. Consolidated revenue was flat gaining by 0.24% to ₹55,994 crore. Consolidated EBITDA increased 24% YoY to ₹7,201 crore. Hindalco's copper division posted all time high EBITDA of ₹776 crore in the quarter. The company declared a final dividend of ₹3.50 per share for the year.

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Brokerage Views: Motilal Oswal maintained their "buy" call on the stock and revised the target price to ₹790. The company's India business was better than the estimates, powered by robust performance in the Aluminium and Copper business. Novelis, the US subsidiary of Hindalco also posted an improvement in its profitability.  The brokerage said the sequential EBITDA growth was driven by better performance of India aluminium, copper, and Novelis. Motilal sees aluminium cost production to be under control, thereby keeping the margins strong. Novelis would also see margin improvement in FY25 and FY26. 

Kotak Institutional Equities also reiterated their "add" call and increased the target price to ₹755. Kotak also said the company's India EBITDA was ahead of its estimates driven by aluminium and copper divisions reporting higher volumes and better price premiums. The brokerage expect the aluminium division to see margin expansion in FY25 on the back of a deficit commodity market and muted energy costs. 

Antique also maintained a "buy" call and hiked the target price to ₹764 reasoning the improved profit outlook from Novelis and standalone operations. The brokerage sees improved performance from the copper segment, lower coal costs and improvement in Novelis would aid profitability. 

ICICI Securities also has a "buy" call and raised the target price to ₹830 on the back of sustained high performance of the copper division and lower net debt. 

CLSA also maintained its “buy” call on the stock with a price target of ₹770. The brokerage said that the company’s aluminium business posted strong profits and the outlook also remains strong.

Price Action: Shares of Hindalco Industries gained over 1.75% to trade at ₹685.05 on Monday morning. 

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