Buy Hindalco Industries, target price Rs 325: Motilal Oswal

Motilal Oswal has buy call on Hindalco Industries with a target price of Rs 325. The current market price of Hindalco Industries Ltd. is Rs 289.4.

Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 63510.90 Crore) operating in Metals - Non Ferrous sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 34958.00 Crore, up 11.91 % from last quarter Sales of Rs 31237.00 Crore and up 19.73 % from last year same quarter Sales of Rs 29197.00 Crore Company reported net profit after tax of Rs 1875.00 Crore in latest quarter.


Investment Rationale
The brokerage broadly maintains FY21E/FY22E estimate and reiterate HNDL as the top non-ferrous pick. It expects 26% EPS CAGR over FY21-23E driven by better margin and continued deleveraging.

Promoter/FII Holdings
Promoters held 34.7 per cent stake in the company as of Dec 30, 2020, while FIIs held 23.1 per cent, DIIs 22.1 per cent and public and others 20.2 per cent.