Hindalco shares jumped nearly 2% today after Kotak Institutional Equities upgraded the stock to ‘Buy’ from ‘Reduce,’ raising the fair value target to ₹725 from ₹640. The brokerage firm has also revised its earnings estimates, increasing the EPS forecast by 2.5% for FY26 and 3.2% for FY27.
Kotak believes that concerns over Hindalco’s performance have been exaggerated, making the current risk-reward equation attractive for investors. The firm noted that scrap spreads, which had hit a low in Q3FY25, are unlikely to deteriorate further. Additionally, Novelis, Hindalco’s US-based subsidiary, is expected to deliver a 6% CAGR in volumes between FY25 and FY28, supported by a pass-through sales agreement that would shield the company from potential tariffs.
Hindalco’s India business is also poised for growth, with upcoming expansion projects set to enhance capacity and drive earnings momentum.
Hindalco shares opened at ₹625.10, reaching a high of ₹631.70 and a low of ₹622.00. The stock remains well below its 52-week high of ₹772.65 but above its 52-week low of ₹499.00.
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