Citi has reiterated its Buy rating on Hindalco Industries with a target price of ₹800, despite Novelis’ Q1 adjusted EBITDA of $416 million missing its estimate of $434 million. The figure marked a ~17% year-on-year decline, impacted by higher scrap prices, an unfavorable product mix, and a $28 million hit from US tariffs, partially offset by higher product pricing.
Novelis’ volumes rose ~1% YoY to 963kt, as higher can shipments offset declines in auto and specialty shipments. EBITDA per tonne fell to $432 from $494 in Q4 and $525 last year. While the tariff impact is now estimated at ~$60 million per quarter, up from $28 million in Q1, management indicated it does not expect Q2 EBITDA to be materially worse.
Disclaimer: The above views are those of the brokerage cited. Investors should consult a certified financial advisor before making investment decisions.
