Hindalco Industries saw its shares rise over 2% after BoFA Securities maintained its Buy rating with a target price of ₹725. The brokerage remains optimistic about Hindalco’s prospects, citing an improving outlook at Novelis and potential benefits from US tariffs. As of 11:57 AM, the shares were trading 2.04% higher at Rs 651.80.
BoFA highlighted that Constellium and Kaiser’s Q4 CY24 earnings suggest US tariffs could boost scrap spreads, positively impacting Hindalco’s margins. While near-term demand shows a mixed trend—with strong packaging demand but weaker automotive demand—the long-term outlook remains promising.
A key strength for Hindalco is its structural reduction in energy costs in upstream operations, which enhances profitability. Additionally, the stock’s attractive valuation makes it a compelling investment opportunity.
BoFA believes Hindalco’s cost-efficient operations and strategic initiatives will drive sustained growth. With the company well-positioned to capitalize on favorable market dynamics, investors could see long-term value.
Hindalco Industries’ shares opened at ₹639.20, reaching a high of ₹654.40 and a low of ₹637.95. The stock remains below its 52-week high of ₹772.65 but well above its 52-week low of ₹499.00.
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