Angel Broking has maintained neutral rating on Hindalco Industries with a target of Rs 113, in its November 3, 2009 research report.
"Hindalco Industries' Q2FY2010, standalone revenues witnessed de-growth of 13.5% YoY to Rs 4,917 crore. This was mainly due to lower Aluminum and Copper prices, which fell by 35% and 26.7% yoy, respectively. However, the rupee depreciation of 11% yoy, and increased sales volume of aluminium (up 15% yoy) and copper (up 13% yoy), helped in restricting the fall."
"At the CMP, the stock is trading at 11.1x and 6.9x its FY2010E and FY2011E EV/EBITDA, respectively. We believe that the high inventory levels of aluminium and copper will prevent any significant price rise from the current levels. We maintain our Neutral rating on the stock, with a fair value of Rs 113," says Angel Broking research report," says Angel Broking research report.
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