Analysts expect Hindalco to rally past Rs 100 mark

MUMBAI: Shares of Hindalco Industries moved higher in choppy trade as sentiment turned bullish in the counter after its subsidiary Novelis hiked price of painted aluminium sheet products in Europe.

At 12:52 p.m.; the stock was at Rs 97, up 2.97 per cent, on the BSE. It touched a high of Rs 97.65 and a low of Rs 94.80 in trade today.

According to reports, the fabrication price will increase by 100 euro per ton for painted products and selected specialty sheet.

“This price adjustment reflects the prevailing strong demand for aluminium painted products combined with increasing production costs,” said Erwin Mayr, Senior Vice President, Novelis and President, Novelis Europe.

Hindalco has been gaining momentum as globally, things are looking charged up and incrementally, things are looking rather positive for aluminium as a cycle.

The revival in US housing market and demand from the US aviation industry is expected to increase aluminium demand.

According to Nikunj Dalmia, Senior Stocks editor, ET NOW, Hindalco may not give too much of headroom in the short-term. But a level of Rs 120-125 looks conceivable as even at Rs 120 it will be trading below its book value.

Ashwani Gujral, Fund Manager, ashwanigujral.com has recommended traders to buy the stock with stoploss of Rs 92 for a target of Rs 102.