CLSA has maintained its outperform call on Hindalco Industries Ltd with a target price of ₹875 per share, implying an upside potential of around 10.7% from the current market price of ₹790.50.
The brokerage said the company’s India operations delivered in-line EBITDA performance, supported by strong aluminium profitability. CLSA expects the second half of FY26 to be even better, aided by higher metal prices, though partly offset by hedging.
Hindalco has also announced an additional smelter expansion in India and guided for a $10 billion capex plan for FY26–29, while maintaining a conservative leverage profile with through-cycle net debt-to-EBITDA below 2x.
However, the brokerage flagged that the low internal rate of return (IRR) for Bay Minette and concerns around Novelis could remain an overhang on valuations. Still, it believes the high profitability of Hindalco’s domestic business will support the stock, with a potential rerating hinging on project execution and sustained free cash flow generation.
Disclaimer: The above article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice or recommendations to buy or sell any securities.
