Hindalco Industries shares rise over 2% Aditya Birla Group firm jumps to 416 on BSE after registering 99.7% rise in its consolidated net profit 3,851 crore for the quarter ended March, 2022. Its consolidated revenue from operations increased 55,764 crore as against 40,507 crore in the same quarter of FY21.
“Management’s guidance on Novelis is positive. Its long term outlook is also encouraging. While Novelis remains the bright spot in Hindalco consolidated profitability, concerns over its India business are transient,” said brokerage Motilal Oswal.
The brokerage has maintained a buy rating on Hindalco shares with SoTP-based target pricing 555 per. According to Motilal Oswal, an extended coal crisis remains the major risk.
Led by meaningful improvement in valuations and stable performance in both India and Novelis operations, brokerage Prabhudas Lilladher has upgraded to accumulating metal stocks with target price. 545.
Indian aluminum business registers strong EBITDA growth of 123% 4,050 crore, with an Ebitda margin of 41%. The company attributed this to improved downstream business performance from favorable macros, higher volumes, better operating efficiencies and higher input costs.
“Novelis margin is expected to cross US$500/t in Q1FY23 as the previous quarter was impacted due to one-time issues related to production and logistics in North America. With tight market conditions, demand for beverage cans and specialty products remained strong. However, margins will remain low for the next few quarters due to higher energy costs.”
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