JM Financial is bullish on Hindalco Industries has recommended buy rating on the stock with a target price of Rs 310 in its research report dated March 12, 2018.
JM Financial's research report on Hindalco Industries
We believe Novelis’ earnings will see minimal impact from the 10% tariff imposition on aluminium by the United States of America. a) Exemption to key exporter Canada (51%) and b) significant recycling dependence (at over 50%) blunt any possible meaningful impact on Novelis. Duty imposition on Novelis’ end products, namely auto and can sheets, further insulates the US market from dumping by other countries (ruling out competition to Novelis).
Outlook
A c.20% correction in stock price from the recent peak without any meaningful adverse impact in earnings outlook further strengthens the investment argument. We reiterate BUY with an SOTP fair value of INR 310/sh, implying an upside of c.37%.For all recommendations report, click here
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