ICICI Direct raises price target on Hindalco, maintains 'hold' rating
The company's stock has more than doubled in one year, owing to stability in commodity prices after a sharp downturn last year. It closed at Rs. 182.10 apiece on Thursday on BSE.
Mumbai: Brokerage ICICI Direct raised share price target on Hindalco Industries to Rs. 180 from Rs. 165, citing strong performance at the aluminium maker and its U.S.-based unit Novelis in the last few quarters.
The company's stock has more than doubled in one year, owing to stability in commodity prices after a sharp downturn last year. It closed at Rs. 182.10 apiece on Thursday on BSE.
"Hindalco’s healthy performance in the last couple of quarters has been driven by lower raw material cost. Further, Novelis’ performance has improved substantially driven by increasing automotive shipments," said analysts Dewang Sanghavi and Akshay Kadam in a report on Monday.
The brokerage continued to maintain 'hold' rating on the stock.
Hindalco reported a net profit in the December quarter from a loss in the year-ago period. Standalone net profit in the third quarter stood at Rs320.56 crore compared to a loss of Rs32.75 crore a year earlier. Net sales rose 13.7% to Rs9,914.81 crore from Rs8,715.94 crore a year earlier.
The company, which competes with Vedanta, is betting on higher aluminium consumption on the back strong government infrastructure spending in India and implementation of Goods and Services Tax (GST).
The company's stock has more than doubled in one year, owing to stability in commodity prices after a sharp downturn last year. It closed at Rs. 182.10 apiece on Thursday on BSE.
"Hindalco’s healthy performance in the last couple of quarters has been driven by lower raw material cost. Further, Novelis’ performance has improved substantially driven by increasing automotive shipments," said analysts Dewang Sanghavi and Akshay Kadam in a report on Monday.
The brokerage continued to maintain 'hold' rating on the stock.
Hindalco reported a net profit in the December quarter from a loss in the year-ago period. Standalone net profit in the third quarter stood at Rs320.56 crore compared to a loss of Rs32.75 crore a year earlier. Net sales rose 13.7% to Rs9,914.81 crore from Rs8,715.94 crore a year earlier.
The company, which competes with Vedanta, is betting on higher aluminium consumption on the back strong government infrastructure spending in India and implementation of Goods and Services Tax (GST).
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