Expect 30% Upside In Hindalco Industries: Akash Jain
"We can expect around 30 percent upside from current market price as the recent fall was owing to sentiments turning negative in metal sector rather than impact on its earnings," says Akash Jain of Ajcon Global Services.
Apr 11, 2018 / 03:09 PM IST
Akash JainVice-president, Equity Research
Ajcon Global Services
In Hindalco Industries, we can expect around 30 percent upside from current market price as the recent fall was owing to sentiments turning negative in metal sector rather than impact on its earnings. The recent tariff imposition on aluminium by US will have limited impact on Novelis earnings as it has significant recycling dependence at over 50 percent.
Duty imposition on Novelis’ end products, namely auto and can sheets, further insulates the US market from dumping by other countries (ruling out competition to Novelis).
The company has achieved full utilization at aluminium plants in India and with higher coal security of 80 percent+ augurs well for its earnings.Disclaimer
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