Hindalco Industries Ltd. share price target

Steep fall in LME Aluminium prices to weigh on earnings Hindalco's standalone 1QFY16 EBITDA was ahead of our estimate at Rs8.8bn, which grew by 17% yoy and 3.5% qoq as against our estimate of Rs6.6bn. The aluminium segment reported a 32% yoy increase in revenues on higher sales volume. Aluminium EBIT margins at 6.4% fell 100bps qoq and 423bps yoy. The fall was lower than expected due to lower input costs and despite closure of its captive coal mine (Talabira I). Copper segment reported stable margins at 7.4% during the quarter on firm Tc/Rc. Going forward, while volumes will continue to increase due...

business. However, Novelis disappointed with lower profitability. Nearterm outlook continues to be weak for standalone operations and Novelis. Lower LME prices and sharp fallinregionalpremiumswillimpactstandaloneperformancewhilemetalpricelagimpact...

Buy dips to Rs 99 - Rs 106 for Target of Rs 128 in 1 quarter

Higher volumes helped Hindalco report in line performance in India however Novelis saw variousheadwindsimpactingitsperformance.Challengesareexpectedtocontinuebothin India(coalavailabilityissues)aswellasNovelis(Currencyimpact,poorBrazilianeconomy,...