17 hours Ago
JM Financial has a buy call on Hindalco Industries with a target price of Rs 800. The current market price of Hindalco is Rs 653.6.
Hindalco Industries, incorporated in 1958, is a Large Cap company, with a market cap of Rs 148586.62 crore. operating in Metals - Non Ferrous sector.
Hindalco's key products/revenue segments include Copper/Copper Products, Aluminium, Other Operating Revenue, Sale of services for the year ending 31-Mar-2024. Financials For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 58,899 crore, down -.64% from last quarter Total Income of Rs 59,278 crore and up 10.
95% from last year same quarter Total Income of Rs 53,088 crore. The company has reported net profit after tax of Rs 3,734 crore in latest quarter. The company's top management includes Mr.
Kumar Mangalam Birla, Mr.Satish Pai, Mr.Praveen Kumar Maheshwari, Mrs.
Rajashree Birla, Mr.Askaran Agarwala, Mr.Sushil Agarwal, Mr.
Yazdi Piroj Dandiwala, Ms.Alka Marezban Bharucha, Mr.Vikas Balia, Mr.
Sudhir Mital, Mr.Kumar Mangalam Birla, Mr.Kailash Nath Bhandari, Mr.
Satish Pai, Mr.Praveen Kumar Maheshwari, Mrs.Rajashree Birla, Mr.
Askaran Agarwala, Mr.Sushil Agarwal, Mr.Yazdi Piroj Dandiwala, Ms.
Alka Marezban Bharucha, Mr.Vikas Balia, Mr.Sudhir Mital, Mr.
Kailash Nath Bhandari. The company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-12-2024, the company has a total of 225 crore shares outstanding.
Investment RationaleThe margin expansion from current sub ~US$500/t EBITDA/t to US$600/t at Novelis will be led by a)operating leverage from scale ? primarily led by Bay Minette and de-bottlenecking projects b)pricing ? renewed pricing contracts for beverage sheets c) product mix ? sustained high margin auto product volumes in the mix d) operational efficiencies (US$300mn) ? phasing out sub-optimal plants like Richmond; savings driven by SG&A initiatives e) increased recycling content from current 63% to 75% by 2030. Indian aluminum operations will benefit on account of a) higher captive coal in the mix with mines getting operational in the medium term ? Meenakshi / Chakla b) volume growth led by growth projects in aluminium (180ktpa) / FRP (170ktpa) / alumina (850ktpa) operations. The Company reinstated its Net debt to EBITDA guidance for the consolidated entity to ~2x and for Novelis ~2.
5x. Current capital expenditure program includes US$5bn for India and US$5bn for Novelis. Hindal co continues to maintain a strong ROIC focus alongside 8-10% of the FCF committed towards return to shareholders.
The current Net debt to EBITDA stands at ~1.3x. The outlook for Hindalco continues to be buoyant given resilient performance by India aluminium operations and enhanced coal security.
JM Financial has re-iterated the BUY call with a target price of Rs 800. Promoter/FII Holdings Promoters held 34.64 per cent stake in the company as of 31-Dec-2024, while FIIs owned 28.
04 per cent, DIIs 24.22 per cent..
