Motilal Oswal has given Buy recommendation for Hindalco with a target price of Rs. 605 in its research report issued on Feb 08, 2022

Motilal Oswal’s research report on Hindalco

Higher energy costs in Europe, a strike in Asia, semiconductor shortages in North America, and unplanned downtime in South America notwithstanding, Novelis delivered yet another strong set of earnings. We raise our FY22E/FY23E EPS by 19.6%/15%, led by a 13.8%/11.9% jump in EBITDA to INR276b/INR286b on the back of a hike in our LME assumptions by 10.6%/8.7% and a further depreciation in the USD:INR by 0.9%/1.9%.

Outlook

We raise our TP to INR605 from INR520/share, implying a 16% upside. A key risk to our estimates is a slowdown in China driving down commodities prices and COVID-related disruptions.

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At 13:57 hrs Hindalco Industries was quoting at Rs 549.05, up Rs 6.70, or 1.24 percent.

It has touched an intraday high of Rs 549.70 and an intraday low of Rs 541.00.

It was trading with volumes of 197,751 shares, compared to its thirty day average of 280,996 shares, a decrease of -29.63 percent.

In the previous trading session, the share closed up 2.94 percent or Rs 15.50 at Rs 542.35.

The share touched its 52-week high Rs 551.65 and 52-week low Rs 274.75 on 18 October, 2021 and 10 February, 2021, respectively.

Currently, it is trading 0.47 percent below its 52-week high and 99.84 percent above its 52-week low.

Market capitalisation stands at Rs 123,380.95 crore.

 

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