Hindalco share price: Buy Hindalco Industries, target price Rs 225: ICICI Direct

ICICI Direct has given a buy rating to Hindalco Industries with a target price of Rs 225. The share price moved down by 0.09 per cent from its previous close of Rs 174.40. The stock’s last traded price is Rs 174.25.

Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 38749.58 Crore) operating in Metals – Non Ferrous sector.

For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 25283.00 Crore, down 13.76 % from last quarter Sales of Rs 29318.00 Crore and down 15.64 % from last year same quarter Sales of Rs 29972.13 Crore. The Company reported net profit after tax of Rs -712.00 Crore in latest quarter.

Investment Rationale
For Q2FY21E, the brokerage expects Hindalco’s domestic operations to report aluminium sales volume of ~315000 tonnes (328000 in Q2FY20, 303000 in Q1FY21) and copper sales of 75000 tonnes (82000 tonnes in Q2FY20, 58000 tonnes in Q1FY21). It expects topline (standalone + Utkal) to come in at Rs 9621 crore (down 3.5% YoY, up 28.9% QoQ). EBITDA (standalone + Utkal) is likely to come in at Rs 1185 crore (up 8.2% YoY, 32.6% QoQ). Novelis (including Aleris) is likely to report sales volume of 875 KT and EBITDA/tonne of US$375/tonne.

Promoter/FII Holdings
Promoters held 34.7 per cent stake in the company as of June 30, 2020, while FIIs held 18.8 per cent, DIIs 27.3 per cent and public and others 19.3 per cent.

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