Hindalco stock's lacklustre show continues even as the company reports inline Q3 results; Jefferies cuts target

Hindalco Share Price: Hindalco's lacklustre show continued on Wednesday (February 14, 2024) as it slipped in morning deals a day after the company reported inline December quarter numbers.
The stock of the company was trading lower by 0.21 per cent, or Rs 1.05, at Rs 508.90 at 10:02 am on Wednesday.

Hindalco's stock closed at Rs 509.95 after over 12 per cent fall on Tuesday. It opened at Rs 515.00 on Wednesday to reach a high of Rs 516.20 and hit a low of Rs 505.55.    

The stock's 52-week high is Rs 620.60, while its 52-week low is Rs 381.00.   

The company's consolidated profit after tax increased to Rs 2330 crore in the December quarter from Rs 1360 crore Year-on-Year (YoY) against Zee Business research estimates of Rs 2418 crore.

The consolidated revenue from operations, however, decreased to Rs 52,808 crore in Q3 from Rs 53,150 crore YoY. It was below analyst estimates of Rs 52,673 crore.

What do brokerages say about Hindalco?

Jefferies has maintained a 'buy' call on the company, cutting the target to Rs 610 from Rs 725.

Macquarie has maintained an 'outperform' rating on the company with a target of Rs 570.

It said that the company's copper EBITDA grew by 20 per cent Rs 660 crore YoY.

The aluminium segment EBITDA grew 46 per cent YoY led by lower coal cost.

The brokerage says Hindalco's India's business has a net cash balance now.

It says the focus remains on completing downstream and alumina expansion projects.

Why did Hindalco fall on Tuesday?

Hindalco's stock fell on Tuesday after an increase in cost and time in CAPEX of its subsidiary Novelis' plant at Bay Minette, Alabama, USA. Novelis said in a press statement that the CAPEX for the plant has increased from $250 crore to $410 crore, which is a 64 per cent jump.