Hindalco: Brokerages see up to 69% upside in this Aditya Birla Group's stock post q4 result - Here is why

Hindalco Industries, an Aditya Birla Group's company, doubled its consolidated profit year-on-year in the quarter ended March 2022. Shares of this Aditya Birla Group's company gained over four per cent to Rs 426.85 per share in the morning trade on the BSE after strong q4fy22 numbers. As the company posted inline results in the recently concluded quarter, brokerages remained largely bullish on the counter. The most aggressive target was put out by Macquarie, which sees as upside of 69% in the aluminum sector counter.  

As per Motilal Oswal, results were in line, however, there will be pressure on the stock in the short term due to expected rise in the cost of production of aluminum. The aluminum production cost would be largely driven by higher coal costs due to non-availability as well as high price, it said.  

Expecting the coal crisis to dissipate in the next one-to-two quarters, the brokerage maintained a buy rating with a target price of Rs 555 apiece. It is an upside of 36% on Thursday's closing price of Rs 408 share on the BSE.  

Global brokerage firm CLSA maintained a buy rating with a target price of Rs 580 per share. It feels that the results were on expected line, but all headwinds have been priced in at current levels. 

Macquarie too maintained an outperform rating with a target price of Rs 689, while Credit Suisse sees a target price of Rs 640 per share. It also retained its outperform rating on the Aditya Birla Group's stock.  

On the contrary, Jefferies downgraded Hindalco to hold and slashed the share target price to Rs 440 from Rs 475 previously.  

Earlier, Aditya Birla Group's Hindalco Industries Ltd on Thursday posted a 99.7 per cent rise in its consolidated profit after tax at Rs 3,851 crore for the quarter ended March, 2022, against consolidated PAT of Rs 1,928 crore in the year-ago quarter. 
 

The results were driven by an exceptional performance by India business, supported by favourable macros, strategic product mix and an improved performance by the downstream business, the company said in a regulatory filing.  
 

"Hindalco Industries Limited, the Aditya Birla Group metals flagship, has outperformed financially and operationally, reporting its highest ever quarterly net profit in Q4 FY22. The company's consolidated PAT (Profit After Tax) peaked to a record-high of Rs 3,851 crore, a 100 per cent growth YoY," Hindalco Industries said in a statement