BoFA Securities has maintained a Buy rating on Hindalco with a target price of ₹725, citing an improving outlook at Novelis and potential benefits from US tariffs. The brokerage noted that Constellium and Kaiser’s Q4 CY24 earnings indicate that US tariffs could positively impact scrap spreads, benefiting Hindalco’s margins.
BoFA also highlighted a mixed near-term demand outlook with strong packaging demand but weak automotive demand. Despite these challenges, the brokerage remains positive on Hindalco due to structural reduction of energy costs in upstream operations and its attractive valuations.
The brokerage believes Hindalco is well-positioned to benefit from the improving outlook at Novelis, and its cost-efficient operations and strategic initiatives are expected to support long-term growth.
