CLSA upgrades Hindalco to ‘underperform’; cuts price target to Rs 98
CLSA has also slashed its EPS estimates by 11 to 19% for fiscal 13 to 15 given near term pressure and limited visibility of any major triggers.
By ET Online | Updated:
NEW DELHI: CLSA has upgraded Hindalco Industries from ‘sell’ to ‘underperform’ in its latest report
According to the brokerage firm, the investment outlook for Hindalco remains clouded by weakening aluminium prices and lack of approvals for captive coal mines for the Greenfield smelters.
The brokerage house has also slashed its price target from Rs 105 to Rs 98.
At 10:20 am, Hindalco was trading 0.3 per cent higher at Rs 90.60. It has hit a low of Rs 90.50 and a high of Rs 91.70 in trade today.
The brokerage house has also slashed its EPS estimates by 11 to 19 per cent for fiscal 13 to 15 given near term pressure and limited visibility of any major triggers.
“If the captive coal mines come through and aluminium prices also recover to US$2300/t, then we see a value of Rs194/sh in 3-years, and value investors might find the stock interesting at current levels,” CLSA said in a note.
According to the brokerage firm, the investment outlook for Hindalco remains clouded by weakening aluminium prices and lack of approvals for captive coal mines for the Greenfield smelters.
The brokerage house has also slashed its price target from Rs 105 to Rs 98.
At 10:20 am, Hindalco was trading 0.3 per cent higher at Rs 90.60. It has hit a low of Rs 90.50 and a high of Rs 91.70 in trade today.
The brokerage house has also slashed its EPS estimates by 11 to 19 per cent for fiscal 13 to 15 given near term pressure and limited visibility of any major triggers.
“If the captive coal mines come through and aluminium prices also recover to US$2300/t, then we see a value of Rs194/sh in 3-years, and value investors might find the stock interesting at current levels,” CLSA said in a note.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
Related Articles
Hindalco, NALCO, Vedanta Aluminium shares crash up to 6% as aluminium prices drop on US-Iran peace dealADVERTISEMENT
