ICICI Securities research report on Hindalco Industries
Hindalco’s (HNDL) Q4FY25 performance was ahead of our/consensus estimates. Key points: 1) Consolidated EBITDA rose 44% YoY to INR 96bn, mainly due to upstream aluminium (Al) division. 2) Downstream Al EBITDA/te rose 46% YoY to USD 241 owing to better product mix. 3) Net debt was down 16% QoQ to INR 353bn with India business having net cash of INR 75bn. 4) Acquired Bandha coal block to meet the requirement of Mahaan Al plant. Going ahead, we expect the ramp-up of downstream capacities in both Al and Copper (Cu) divisions and higher Specialty Alumina sales to support EBITDA.
Outlook
We expect HNDL’s growth trajectory to remain on track, as new projects are on schedule. Retain BUY with an unchanged TP of INR 770 based on 6.3x FY27E EBITDA.
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