Hindalco Company became the buzzing stock today, Zee Business' Research Analyst Ashish Chaturvedi explains why!

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According to Chaturvedi, the company's balance sheet has been growing strong. Recently the company presented a report to its investors. 

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The presentation said that it aimed at improving ESG rating.

The company also targets to achieve a net debt decrease of 15 per cent

Hindalco maintained a bullish attitude towards aluminium and copper as the demand is going to increase, Chaturvedi said.

Copper's domestic demand is going to increase by FY32 due to the rise of e-mobility, urbanisation, clean energy. 

Additionally, the consumption of aluminium will grow from 4 MT to 8 MT by FY32.

Novelis holds 40 per cent of the global can market share.

To meet the increasing demand for aluminium, the company has planned on heavy CapEx of up to Rs 18000 crore. 

The company also plans on increasing the capacity of its alumina refining project in Odisha. The current capacity is 10 lakh tons.

The CapEx announced for its copper unit is Rs 2,200 crore and for coal mining is Rs 3,500 crore. 

However, brokerage houses didn't approve the company during its investors' presentation. The brokerage firms reasoned that the company's stocks are already at their high levels as it has already given enough run-up. Therefore, they decided to give the company a down rating, Although they've maintained a higher target price for the company from its current level.

The target price, according to CLSA for the company, is Rs 695, and JP Morgan is Rs 665.

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