Buy Hindalco Industries, target price Rs 500: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Hindalco Industries with a target price of Rs 500. The current market price of Hindalco Industries is Rs 421.35.

Hindalco Industries, incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 94640.60 Crore) operating in Metals - Non Ferrous sector.

Hindalco Industries key Products/Revenue Segments include Aluminium, Other Operating Revenue, Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 53517.00 Crore, down -5.29 % from last quarter Total Income of Rs 56504.00 Crore and up 6.07 % from last year same quarter Total Income of Rs 50453.00 Crore. Company has reported net profit after tax of Rs 1360.00 Crore in latest quarter.

The company’s top management includes Mr.Kumar Mangalam Birla, Mr.Sudhir Mital, Mr.Vikas Balia, Ms.Alka Bharucha, Mr.Yazdi Piroj Dandiwala, Mr.Kailash Nath Bhandari, Mr.Askaran Agarwala, Mrs.Rajashree Birla, Mr.Praveen Kumar Maheshwari, Mr.Satish Pai, Mr.Anant Maheshwari. Company has Price Waterhouse & Co Chartered Accountants LLP as its auditors. As on 31-12-2022, the company has a total of 225 Crore shares outstanding.

Investment Rationale
The brokerage remains confident on the long-term opportunities and considering its leadership in both beverage can and automotive markets, Motilal Oswal reiterates its BUY rating on the counter with an SoTP-based TP of INR500. The stock is trading at 4.8xFY24E EV/EBITDA and 1.4x FY24E P/B.

Promoter/FII Holdings
Promoters held 34.64 per cent stake in the company as of 31-Dec-2022, while FIIs owned 25.66 per cent, DIIs 26.35 per cent.