Jefferies has maintained its Hold rating on Hindalco with a target price of ₹690, after Novelis’ Q1 EBITDA fell 17% YoY to $416 million, coming in 5% below its estimates. While volumes grew 1% YoY, EBITDA per tonne contracted 13% QoQ to $432 due to an unfavorable product mix and US tariffs.
Novelis expects the tariff impact to rise from $28 million in Q1 to ~$60 million in Q2 but believes EBITDA has bottomed, citing easing scrap prices and cost-saving measures. Net debt rose 8% QoQ to a 19-quarter high, adding some balance sheet pressure.
Disclaimer: The above views are those of the brokerage cited. Investors should consult a certified financial advisor before making investment decisions.
