Brokerages raise Hindalco's target price as subsidiary Novelis beats Q4 estimates

The stock of Hindalco has surged over 12 percent in the past one month, outpacing 0.3 percent decline in the benchmark Nifty 50 index

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Hindalco shares will be in focus on May 7 after wholly owned subsidiary Novelis reported strong Q4FY24 numbers.

Brokerages reiterated their bullish stance on the counter, saying that they find the valuation attractive and growth prospects improving.

Jefferies shared a 'buy' call on Hindalco, raising the target price to Rs 810 per share . "We raise FY25-26E EPS by 2-3 percent and see valuations attractive, at 6.1x FY25E EV/EBITDA," the brokerage firm said.

Follow our live blog for all the market action

CLSA also shared a 'buy' call and gave a target price of Rs 770, seeing further levers of margin improvement for the company.

"Novelis's profitability was above guidance, while volumes saw a modest uptick. We see further levers of margin improvement for Novelis, such as price revisions, rise in recycling content, and operational efficiencies. Novelis' debt-reduction is also in line with seasonality," the brokerage firm added.

The company's net income rose by 6 percent year on year (YoY) to $166 million in Q4FY24, due to higher adjusted EBITDA, which climbed by 28 percent YoY to $514 million.

This significant improvement was primarily driven by favourable recycling and lower operating costs than the corresponding period a year ago, said the management in an exchange filing.

ALSO READ: CLSA reiterates buy ratings on Hindalco, Vedanta on aluminum demand recovery

Novelis is a subsidiary of Hindalco Industries and the metals flagship company of the Aditya Birla Group.

The stock of Hindalco has surged over 12 percent in the past one month, outpacing a 0.3 percent decline in the benchmark Nifty 50 index.

Given the outperformance, analysts at Nuvama shared a 'hold' rating on the stock, seeing limited upside ahead. "We should wait for lower entry points to re-enter the stock," they said, hiking target price to Rs 651 from Rs 508 earlier.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.