Hindalco Industries Ltd. share price target

Hindalco’s decision to acquire Hydro's aluminium extrusions business in India (Kuppam in AP) for Rs2.5bn falls within the envelope of Hindalco’s ‘Doubling the downstream’ strategy wherein the company has entailed a capex of US$1.1bn. The plant will also serve as an archetype for Hindalco's upcoming extrusions plant in Silvassa (Rs7.3bn capex for 34ktpa greenfield plant).

Hindalco Industries Limited, the Aditya Birla Group metals flagship, consolidated Revenue for the second quarter stood at Rs.47,665 crore (vs Rs.31,237 crore), up 53% YoY. Consolidated PAT in Q2 FY22 rose to Rs.3,403.41 crore from Rs.334.67 crore in Q2 FY21, a jump of 917% YoY. The results were driven by an exceptional performance by Novelis and India Business,...

Will announce new capex program in Jan-Feb'2022 Hindalco (HNDL) reported Q2FY22 EBITDA above our/consensus estimates by 15%/20% at Rs36.0bn. Beat was primarily driven by better than expected...

For Q2FY22, Hindalco's wholly owned overseas subsidiary Novelis reported sales volume of 968 KT (up 5% YoY), broadly in line with our estimate of 974 KT. For Q2FY22, Novelis reported all-time high adjusted EBITDA/tonne...

EBITDA grew 219.3% YoY to Rs. 6,173cr due to strong volume growth, improved product mix and favorable macro factors. Adjusted PAT rose to Rs. 2,211cr (vs. Rs. 290cr loss in Q1FY21) after adjusting for Brazilian...

Novelis has leveraged its extensive recycling footprint and favourable market conditions to increase its recycled content to 61% in FY21 Novelis reported a healthy performance in Q1FY22. For the quarter, it reported sales volume of 973 KT, higher than our estimate of 950 KT. Excluding non-recurring tax litigation benefit, adjusted EBITDA/tonne for...

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...