Outperform Hindalco, target Rs 115: Credit Suisse
The Q4 beat was due to higher volumes and lower energy cost. The part of the fall in energy cost was driven by cheaper coal, along with that operational efficiencies was also a reason.
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| Updated: The global brokerage firm, Credit Suisse in a report maintains an outperform rating on Hindalco post-March quarter results with a 12-month target price of Rs 115.
The Q4 beat was due to higher volumes and lower energy cost. The part of the fall in energy cost was driven by cheaper coal, along with that operational efficiencies was also a reason.
Utkal alumina refinery generated a strong $78/t of EBITDA in FY16. We could see some minor deleveraging in FY17 as Novelis generates over $200 mn of FCF Hindalco should benefit as LME Al prices recover," said the Credit Suisse report.
The Q4 beat was due to higher volumes and lower energy cost. The part of the fall in energy cost was driven by cheaper coal, along with that operational efficiencies was also a reason.
Utkal alumina refinery generated a strong $78/t of EBITDA in FY16. We could see some minor deleveraging in FY17 as Novelis generates over $200 mn of FCF Hindalco should benefit as LME Al prices recover," said the Credit Suisse report.
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