Hindalco Industries Ltd. share price target

Hindalco Industries, Q1FY21 Improvement visible in all business segments Hindalco Industries consolidated net sales increased 63.58% to Rs 41358 crore in Q1FY22 compared to Q1FY21. Sales of Aluminium segment has gone up 41.28% to Rs 6,267.00 crore (accounting for 14.97% of total sales). Sales of Copper segment has gone up 134.05% to Rs 7,094.00 crore (accounting for 16.94% of total sales). Sales of Others segment has gone up 69.39% to Rs 83.00 crore (accounting for 0.20% of total sales). Sales of Novelis segment has...

Hindalco (HNDL) reported Q1FY22 EBITDA above our estimates by 8% on back of 5.5%/50.5% beat in AL/CU operations. Backed by first mover advantage, market leadership and strong product...

We raise HNDL's FY22/FY23 EBITDA estimate by 3%/7% Novelis, Hindalco's wholly-owned subsidiary, reported record-high adj EBITDA of USD508m (adj for one-off income of USD47m) on the back of record-high margins of USD522/t (+2% QoQ). Novelis should see mix improvement in 2HFY22 and FY23 as the share of auto volumes should increase on account of capacity additions. We raise our consolidated FY22E/FY23E EBITDA by 3%/6%, factoring in a higher aluminum price assumption (+3%/7% to USD2,375/USD2,300 per...

For FY22, the company has additionally hedged 5% of domestic aluminium volume at US$2344/tonne. Earlier for FY22, Hindalco had already hedged ~28% of its domestic aluminium volume at US$1840/tonne. Hence, now...

20.69% of total sales). Sales of Others segment has gone up 7.81% to Rs 69.00 crore Aluminium segment has gone up 12.64% to Rs 5,969.00 crore (accounting for 14.51% of total (accounting for 0.17% of total sales). Sales of Novelis segment has gone up 34.42% to Rs...

HNDL's 4QFY21 earnings for the India business was strong, as expected, with EBITDA up 23% QoQ to INR18.8b on higher LME prices. Consolidated net debt declined INR64b QoQ to INR474b and net debt/EBITDA ratio declined to 2.6x (v/s a peak of 4x post the Aleris acquisition). We broadly maintain our estimates and reiterate HNDL as our top nonferrous pick. Despite rising costs, we estimate India EBITDA/t in FY22E to be the highest ever in the last 10 years at USD865/t. We expect 35% EPS...

Hindalco's wholly-owned subsidiary Novelis also reported a healthy operational performance for Q3FY21, wherein its shipments came in at 933 KT (our estimate: 925 KT). Novelis achieved a record EBITDA/tonne of US$537/tonne (our estimate US$490/tonne). Adjusted EBITDA was at US$501 million, higher than our estimate of US$453 million. Novelis reported a healthy Q3FY21 performance on the back of organic growth, favourable metal benefits and a net US$50 million positive EBITDA contribution from the acquired Aleris business. On the balance sheet front,...

corresponding previous year period. Operating margins of the company rose 340 bps to 14.9% leading to 55% increase in operating profits to Rs 5198 crore. Other income rose 9% to Rs 323 crore. PBDIT increased 51% to Rs 5521 crore. Interest cost fell...

3QFY21 earnings for its India business was strong, as expected, with EBITDA up 20% QoQ to INR15.2b on higher LME prices. Consolidated net debt declined INR42b QoQ to INR538b (INR623b in 1QFY21) and net debtto-EBITDA declined to 3.1x (3.8x in 1QFY21). We broadly maintain our FY21E/FY22E estimate and reiterate HNDL as our top non-ferrous pick. We expect 26% EPS CAGR over FY21-23E driven by better margin and continued deleveraging....