Hindalco shares rally over 2% as Q2 profit beats estimates. Should you buy, sell, or hold?
Hindalco Share Price: Hindalco's shares climbed after the company announced a significant jump in its second-quarter net profit. The company's profit soared by 123% compared to the same period last year. This impressive performance was driven by s...
By Navdeep Singh, ETMarkets.com | Updated:
IANS
Shares of Hindalco on Tuesday rose 2.6% to their day’s high of Rs 672.20 on the BSE after the company reported 123% year-on-year (YoY) growth in its standalone net profit for the quarter ended September 2024 to Rs 1,891 crore, compared to Rs 847 crore posted in the last year quarter.
The profit was higher than the Street estimate of Rs 1,294 crore. Revenue from operations increased 8% YoY to Rs 22,262 crore in the reporting period.
Strong profit growth was driven by a robust operational performance by the India business, favourable macros and prudent cost management.
Segment-wise, Novelis’ performance was impacted by the Sierre flood and tightening of scrap spreads. Novelis revenue for the quarter came in at $4.3 billion, up 5%, driven by higher average aluminium prices.
Adjusted EBITDA for Novelis at $462 million was down 5% due to less favourable metal benefit, unfavourable product mix, and $25 million flood impact at Sierre. Excluding the Sierre flood impact, shipments grew by 4% and EBITDA per tonne was at $502.
Should you buy, sell, or hold Hindalco's stock? Here's what analysts say:
JP Morgan
JP Morgan maintained an 'Overweight' rating on Hindalco, with a target price of Rs 735.
The brokerage noted that the India business delivered an all-around strong performance in Q2. It mentioned there were no negative takeaways from the Q2 results and anticipated slight upward revisions to FY25 consensus estimates following the Q2 beat.
Investec maintained a 'Buy' rating on Hindalco with a target price of Rs 860.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The profit was higher than the Street estimate of Rs 1,294 crore. Revenue from operations increased 8% YoY to Rs 22,262 crore in the reporting period.
Strong profit growth was driven by a robust operational performance by the India business, favourable macros and prudent cost management.
Segment-wise, Novelis’ performance was impacted by the Sierre flood and tightening of scrap spreads. Novelis revenue for the quarter came in at $4.3 billion, up 5%, driven by higher average aluminium prices.
Adjusted EBITDA for Novelis at $462 million was down 5% due to less favourable metal benefit, unfavourable product mix, and $25 million flood impact at Sierre. Excluding the Sierre flood impact, shipments grew by 4% and EBITDA per tonne was at $502.
Should you buy, sell, or hold Hindalco's stock? Here's what analysts say:
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JP Morgan
JP Morgan maintained an 'Overweight' rating on Hindalco, with a target price of Rs 735.
The brokerage noted that the India business delivered an all-around strong performance in Q2. It mentioned there were no negative takeaways from the Q2 results and anticipated slight upward revisions to FY25 consensus estimates following the Q2 beat.
Investec
Investec maintained a 'Buy' rating on Hindalco with a target price of Rs 860.
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The brokerage highlighted an operational beat in the company's performance but noted the need for further clarity on incremental capital expenditures. It also pointed out that Hindalco's India operations are well-positioned regarding bauxite lease expiries compared to its local peers.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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