Buy Hindalco Industries, target price Rs 520: Motilal Oswal

Motilal Oswal has buy call on Hindalco Industries with a target price of Rs 520. The current market price of Hindalco Industries is Rs 435.5. Time period given by analyst is one year when Hindalco Industries price can reach defined target.

Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 99470.29 Crore) operating in Metals - Non Ferrous sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 40696.00 Crore, up 15.35 % from last quarter Total Income of Rs 35281.00 Crore and up 37.38 % from last year same quarter Total Income of Rs 29624.00 Crore. Company reported net profit after tax of Rs 1928.00 Crore in latest quarter.


Investment Rationale
Hindalco (HNDL) is the preferred non-ferrous pick owing to a) robust volume recovery in both India and Novelis, b) strong profitability in its primary Aluminum business, given its low-cost integrated operations in India (in the top quartile globally) and higher LME prices, c) solid FCF generation, which should reduce leverage sharply, and d) reasonable valuations.

Promoter/FII Holdings
Promoters held 34.6 per cent stake in the company as of June 30, 2021, while FIIs held 25.2 per cent, DIIs 20.6 per cent and public and others 19.6 per cent.