Motilal Oswal has given Buy recommendation for Hindalco recommended buy rating on the stock with a target price of Rs 520 in its research r with a target price of Rs. 520 in its research report issued on Aug 05, 2021
Motilal Oswal’s research report on Hindalco
Novelis, Hindalco’s wholly-owned subsidiary, reported record-high adj EBITDA of USD508m (adj for one-off income of USD47m) on the back of record-high margins of USD522/t (+2% QoQ). Novelis should see mix improvement in 2HFY22 and FY23 as the share of auto volumes should increase on account of capacity additions. We raise our consolidated FY22E/FY23E EBITDA by 3%/6%, factoring in a higher aluminum price assumption (+3%/7% to USD2,375/USD2,300 per tonne for FY22/FY23). Reiterate Buy.
The stock trades at 5.2x EV/EBITDA and 8.7x P/E on FY22E. We value HNDL at INR520/share on an SoTP basis. Reiterate Buy.