Hindalco slips 4%; Bank of America Merrill Lynch downgrades

Moneycontrol Bureau

Hindalco Industries shares fell nearly 4 percent in early trade Tuesday. Bank of America Merrill Lynch has downgraded the stock to underperform, and cut its target price to Rs 85 from Rs 105.

The global team of the brokerage house has cut aluminium price estimate for FY14 and FY15 by 6.6 percent and 6.7 percent respectively. "We have cut FY14-15 earnings per share estimates by 19 to 21 percent," Bank of America Merrill Lynch report said.

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At 09:47 hours IST, the stock was quoting at Rs 94.65, down 1.41 percent on the Bombay Stock Exchange.

It gained nearly 10 percent in last 15 days, but lost 9 percent in past one month.