Hindalco Industries share price rose 6 percent in the early trade on May 27 a day after the company reported its March quarter earnings.
Hindalco Industries Limited (Hindalco), on May 26, reported a 100 percent rise in its consolidated net profit of Rs 3,851 crore for the fourth quarter ended March 2022 as against Rs 1,928 crore recorded a year ago. On a sequential basis, the profit increased 4.8 percent from Rs 3,675 crore earned during the October–December period.
Consolidated revenue for one of the largest metals company in India rose 37.7 percent on-year to Rs 55,764 crore as compared to a revenue of Rs 40,507 crore registered a year back. On a sequential basis, the revenue rose 11 percent from a net revenue of Rs 50,272 crore recorded in the previous quarter.
For the full-year period from April 2021 to March 2022, the consolidated net profit grew more than three-fold, or 294.2 percent, to Rs 13,730 crore from Rs 3,483 crore achieved in FY21.
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Here is what brokerages have to say about stock and the company post March quarter earnings
Brokerage house Macquarie has maintained ‘outperform’ rating on the stock with a target at Rs 689 per share.
There was a marginal EBITDA beat, while growth and balance sheet is in focus. The stock valuation risk is skewed to the upside, reported CNBC-TV18.
The research firm has kept the ‘overweight’ rating on the stock and cut target to Rs 565 from Rs 600 per share. The underperformance is not justified given strong earnings and cash flows, it said.
JPMorgan expects potential policy action to be an overhang across stocks, reported CNBC-TV18.
Broking house Jefferies has maintained the ‘hold’ rating on the stock and cut the target to Rs 440 per share.
The EBITDA was down 1 percent QoQ, but 4 percent above estimate. India aluminium margin has peaked, while Spot aluminium is already 13 percent below Q4, it said.
After two strong years, Jefferies expects the EBITDA and EPS to fall 6-13 percent on-year in FY23. The stock is trading above long-term average despite deteriorating global outlook.
The broking house believes it’s too early to turn constructive, reported CNBC-TV18.
Brokerage firm CLSA has maintained ‘buy’ rating on the stock with a target at Rs 580 per share.
The results were in line and headwinds are priced in. Novelis confident of USD 500/t+ profitability despite headwinds, reported CNBC-TV18.
“We cut our FY23 EBITDA/PAT estimate by 16 percent /22 percent, at the consolidated level, driven by a 28 percent reduction in India EBITDA due to higher coal costs. We expect the coal crisis to dissipate in the next one-to-two quarters,” it said.
The brokerage house maintains its ‘buy’ rating with an SoTP-based target price of Rs 555 per share. An extended coal crisis remains the key risk.
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