Hindalco share price: Buy Hindalco Industries, target price Rs 609: Centrum Broking


Centrum Broking brought in Hindalco Industries with a target price of Rs 609. Hindalco Industries’ current market price is Rs 489.9. The period given by the analyst is one year when the price of Hindalco Industries Ltd. can achieve the defined goal. .

Hindalco Industries Ltd., incorporated in 1958, is a large cap company (having a market capitalization of Rs 110,164.80 crore) operating in the metals – non-ferrous sector.

The key product / revenue segments of Hindalco Industries Ltd. include copper / copper products, aluminum, other operating income, sale of services for the year ending March 31, 2021.

Finance

For the quarter ended 30-09-2021, the company reported total consolidated income of Rs 48,063.00 crore, up 15.47% from last quarter total income of Rs 41,625.00 crore and up by 52.45% compared to the total income for the same quarter of last year of Rs 31,528.00 crore. The company reported after-tax net profit of Rs 3,417.00 Crore in the last quarter.

Justification of the investment
The brokerage expects Hindalco (including Utkal Alumina) EBITDA to decline 2.7% quarter on quarter to ~ Rs.32.2 billion. The profitability of the aluminum segment is forecast to decline slightly from 1.4% qoq to ~ 31.2 billion rupees due to higher CoP (1,982 USD / t, up 6.7% qo quarterly) and lower volume (down 3.8% qoq to 325 kt) partially offset by higher achievement / t (up around 4.1% QoQ to Rs 2,40,494 / t ) and sale of additional alumina with a new alumina expansion of 0.5 mtpa. Copper segment EBITDA is expected to be down 12% quarter on quarter to Rs3.08bn. He expects Novelis to report sales volume of 965 kt, stable QoT and adjusted EBITDA of US $ 507 million, down 8.4% QoQ. We expect EBITDA / t of US $ 525, down 8.1% qoq, due to the base effect and higher energy costs.

Promoter / FII Holdings
The promoters held 34.64% of the company’s capital as of September 30, 2021, while the FIIs held 25.47% and the DII 20.61%.

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