Edelweiss has buy call on Hindalco Industries with a target price of Rs 308. The current market price of is Rs 265.7.
Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 59197.46 Crore) operating in Metals - Non Ferrous sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 31237.00 Crore, up 23.55 % from last quarter Sales of Rs 25283.00 Crore and up 5.33 % from last year same quarter Sales of Rs 29657.00 Crore. Company reported net profit after tax of Rs 387.00 Crore in latest quarter.
Investment Rationale
The brokerage believes that Novelis is likely to aid Hindalco’s deleveraging endeavour, besides lending stability to earnings. It maintains ‘BUY/SO’ with an unchanged TP of INR308 (6.4x Q1FY23E EBITDA). The stock is trading at an undemanding 5x FY22E EBITDA, significantly lower than global Al peers’ 6x one-year forward multiple.
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.
Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 59197.46 Crore) operating in Metals - Non Ferrous sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 31237.00 Crore, up 23.55 % from last quarter Sales of Rs 25283.00 Crore and up 5.33 % from last year same quarter Sales of Rs 29657.00 Crore. Company reported net profit after tax of Rs 387.00 Crore in latest quarter.
Investment Rationale
The brokerage believes that Novelis is likely to aid Hindalco’s deleveraging endeavour, besides lending stability to earnings. It maintains ‘BUY/SO’ with an unchanged TP of INR308 (6.4x Q1FY23E EBITDA). The stock is trading at an undemanding 5x FY22E EBITDA, significantly lower than global Al peers’ 6x one-year forward multiple.
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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