350% dividend stock: Brokerages upbeat on Hindalco shares post-Q4 results, Jefferies sees 22% upside

Hindalco share price today NSE, Hindalco share price target, Hindalco Q4 results: Hindalco Industries shares gained on Monday, May 27 after global brokerages' positive reaction to the country’s largest aluminium and copper producer's March quarter results. The stock gained as much as 2.41 per cent to the day's high of Rs 689.5 on the NSE in morning deals. The counter closed at Rs 678.5, up 0.78 per cent on NSE. 

Hindalco Q4 results: Net profit rises 32 % to Rs 3,174 crore

On Friday, Hindalco reported a 31.6 per cent rise in consolidated net profit at Rs 3,174 crore for the March quarter, on the back of stronger margins and volumes across aluminium and copper business segments.

Total income during the quarter under review rose to Rs 56,356 crore over Rs 56,209 crore in the year-ago period. "Consolidated PAT in Q4 FY24 was Rs 3,174 crore compared to Rs 2,411 crore in Q4 FY23, up by 32 per cent year-on-year," the company said in a statement.

Hindalco share price target: Buy, sell or hold?

Jefferies has maintained a buy call on Hindalco with a raise in target by Rs 15 apiece to Rs 825 apiece, the highest among its peers. The revised target implies an upside of 22 per cent from the previous close. 

CLSA too has continued a buy call with a target of Rs 770 apiece on the counter. CLSA has highlighted the following points in note:

• Q4: Strong aluminium profitability
• Progress on expansion projects is crucial to watch for
• Guidance: Strong LME and low-cost
• With a strong aluminium outlook

Hindalco dividend 2024: 350% payout

Hindalco has recommended a dividend of Rs 3.5 or 350 per cent per equity share having a face value of Re 1.

Management Commentary 

Hindalco concluded the year with very strong results across all business segments. This was a clear testament to its strategic focus on value-added products and margin improvement, Hindalco Industries Managing Director Satish Pai said.

"We continue to maintain a strong balance sheet and solid liquidity even after repaying Rs 5,195 crore of debt in Hindalco India business during the year. This positions us well to stay on our growth track and drive our future organic growth plans with prudent capital allocation," he said.

The company's quarterly revenue from the copper business stood at Rs 13,424 crore, up 20 per cent year-on-year due to higher volumes.

(With PTI inputs)

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