Hindalco shares lead losses in metal stocks; what to expect in Aditya Birla group firm's Q4 results today

Aditya Birla group metal company Hindalco Industries' shares were under pressure on Wednesday, as investors awaited the company's financial results for the quarter ended March 2023 due later in the day.

The aluminium producer’s shares declined around 1.5 per cent to hit Rs 404 apiece at the weakest level of the day on BSE. 

The metal stock was among the top Nifty50 laggards in an otherwise volatile market. Hindalco was among the biggest drags on the Nifty Metal, which fell around one per cent. The metal index's 15 constituents include Tata Steel, JSW Steel, Vedanta, SAIL and Nalco.

Q4 results expectations

Analysts expect Hindalco to report a weak performance for the three-month period on a year-on-year basis, though they see slight improvement in its aluminium unit sequentially with an expected rise in the contribution from the auto space.

Hindalco’s consolidated net profit for the last quarter of the financial year 2022-23 is estimated at Rs 2,008 crore — translating to a fall of 47.9 per cent on a year-on-year basis, according to Zee Business research.

The Zee Business analysts expect the aluminum maker’s consolidated quarterly revenue to contract 6.2 per cent to Rs 52,309 crore compared with the corresponding period a year ago.

Near-term headwinds will continue to affect Hindalco's earnings in the first nine months of the current financial year, according to Nuvama Institutional Equities. However, the brokerage is of the view that the long-term market outlook remains robust.

Novuma maintained a ‘hold’ rating for Hindalco with a target of Rs 464 per share.

Hindalco share price: Past performance

Hindalco shares have risen 1.5 per cent in contrast to a 14 per cent gain in the benchmark Nift index.

In 2023 so far, the Hindalco stock has lost more than 16 per cent of its value while the index has gained one per cent.

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