CLSA has reiterated its ‘Buy’ rating on Hindalco, setting a target price of ₹800, which suggests a potential 22% upside from the current market price (CMP) of ₹655.05. The brokerage highlighted robust domestic results and strong EBITDA performance across segments.
- EBITDA Performance: Hindalco reported an EBITDA of ₹43 billion, marking a 17% sequential increase and coming in 35% above CLSA’s estimates. This strong performance was attributed to improvements across both aluminium and copper segments.
- Aluminium Segment: Aluminium EBITDA per tonne rose by $96 quarter-on-quarter to $1,419, despite a $140/tonne drop in the London Metal Exchange (LME) price. Key factors for this growth included a 1% decline in costs, higher alumina profitability, and an improved mix driving downstream earnings.
- Copper Segment: Copper EBITDA reached ₹8.3 billion, a 3% increase quarter-on-quarter. However, management has previously noted that this level of profitability may not be sustained in the future.
- Debt Levels: Consolidated net debt stood at ₹360 billion, a slight increase from ₹355 billion in the previous quarter.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
