Bonanza Portfolio Ltd. highlights Hindalco Industries Ltd. as a Diwali stock to accumulate, with a target price of ₹923, indicating a 26% upside. Hindalco is a leading player in the aluminum and copper sectors, with robust growth avenues and expansion projects lined up.
Key Highlights:
- Downstream Capacity Expansion: Hindalco is expanding its downstream aluminum capacity, aiming for 55-60 billion in FY25 capital expenditures for upstream projects.
- Aluminum and Copper Performance: In Q1FY25, the aluminum division showed 15% YoY growth, while copper EBITDA surged by 52% YoY due to higher copper prices and strong operational efficiency.
- Novelis Expansion: Hindalco’s subsidiary Novelis is expanding its North American aluminum rolling capacity, contributing to overall profitability.
- Valuation: Hindalco trades at 11.2x/10.4x FY25E/FY26E EPS, providing strong earnings potential with an upside of 26%.
The current market price is ₹735, with Bonanza Portfolio targeting ₹923, making it a strong stock to buy this Diwali.
Disclaimer:
Stock investments are subject to market risks. Please read all related documents carefully before investing. The information provided is for informational purposes only and should not be construed as financial advice. Consult your financial advisor before making any investment decisions.
