Hindalco Industries Limited, incorporated in the year 1958, is a large-cap company operating in the metals – non ferrous sector (has a market cap of Rs 71370.21 crore).
Hindalco Industries Limited. Major products / revenue categories include copper / copper products, aluminum, other operating income, and sales of services for the year ended 31-March-2121.
For the quarter ended 31-03-2022, the company reported consolidated total income of Rs 56057.00 crore, up 11.11% from Rs 50453.00 crore in the previous quarter and 37.75% over the same quarter last year. . The company reported net profit of Rs 3850.00 crore in the latest quarter.
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Hindalco (HNDL IN) share price has fallen ~ 50% since the March 2022 peak, as investors are concerned about its massive capex plans, amid aluminum prices and fears of a recession in the US and developed economies. Europe. The brokerage believes that the shares have led to pessimism and the market has failed to differentiate companies like HNDL, whose earnings are relatively low on commodity prices, and that ~ 60% of EBITDA comes from an intact conversion transaction. We believe that the fundamentals of aluminum are solid and there should be no major drop in the current USD 2,500 / t price. However, with China’s rising exports, the global deficit may decrease, and accordingly, it will reduce average LME aluminum prices to USD 2,600 / t in FY23E and USD2,400 / t in FY24E, leading to a 3% / 6% reduction in FY23E / FY24E EBITDA. With earnings reduction and lower valuation, we lower our target price to Rs473 (formerly Rs573), valuing Novelis at 6.0x FY24E EV / EBITDA and Indian operations at 4.0x FY24E EV / EBITDA. At CMP, the stock is trading at 4.0x FY24E EV / EBITDA, a decade low. Repeat BUY.
Promoter / FII Holdings
As of 31-Mar-2022, the promoters held 34.64 per cent stake in the company, while the FIIs held 28.85 per cent while the DIIs held 19.22 per cent.
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