AgenciesRelated
Axis Securities has buy call on Hindalco Industries with a target price of Rs 510. The current market price of is Rs 412.5. Time period given by analyst is one year when . price can reach defined target.
Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 92785.76 Crore) operating in Metals - Non Ferrous sector.
Hindalco Industries Ltd. key Products/Revenue Segments include Copper/Copper Products, Aluminium, Other Operating Revenue, Sale of services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 50453.00 Crore, up 4.97 % from last quarter Total Income of Rs 48063.00 Crore and up 43.00 % from last year same quarter Total Income of Rs 35281.00 Crore. Company reported net profit after tax of Rs 3672.00 Crore in latest quarter.
Investment Rationale
Aluminium prices have corrected from the peak of $3,877/tonne in Mar’22 to a level of $2,800/tonne in May. The Covid-19 led lockdown in China has narrowed the CY22 market deficit to 1MT from an earlier estimate of 1.4MT (as per global consultants). THe brokerage revises Aluminium prices downwards and cut EBITDA estimates for FY23/24 in line with the new prices and higher energy cost guidance. It revises TP (SoTP based) downwards to Rs 510/share from Rs 660, implying an upside of 25% from the CMP. It maintains BUY and value the stock using a 12MF EV/EBITDA multiple of 5.0x (5.5x earlier) for Indian business and 6.5x for the Novelis operations on FY24 EBITDA estimates.
Promoter/FII Holdings
Promoters held 34.64 per cent stake in the company as of 31-Mar-2022, while FIIs owned 28.85 per cent, DIIs 19.22 per cent.
Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 92785.76 Crore) operating in Metals - Non Ferrous sector.
Hindalco Industries Ltd. key Products/Revenue Segments include Copper/Copper Products, Aluminium, Other Operating Revenue, Sale of services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 50453.00 Crore, up 4.97 % from last quarter Total Income of Rs 48063.00 Crore and up 43.00 % from last year same quarter Total Income of Rs 35281.00 Crore. Company reported net profit after tax of Rs 3672.00 Crore in latest quarter.
Investment Rationale
Aluminium prices have corrected from the peak of $3,877/tonne in Mar’22 to a level of $2,800/tonne in May. The Covid-19 led lockdown in China has narrowed the CY22 market deficit to 1MT from an earlier estimate of 1.4MT (as per global consultants). THe brokerage revises Aluminium prices downwards and cut EBITDA estimates for FY23/24 in line with the new prices and higher energy cost guidance. It revises TP (SoTP based) downwards to Rs 510/share from Rs 660, implying an upside of 25% from the CMP. It maintains BUY and value the stock using a 12MF EV/EBITDA multiple of 5.0x (5.5x earlier) for Indian business and 6.5x for the Novelis operations on FY24 EBITDA estimates.
Promoter/FII Holdings
Promoters held 34.64 per cent stake in the company as of 31-Mar-2022, while FIIs owned 28.85 per cent, DIIs 19.22 per cent.
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