Buy Hindalco Industries; target of Rs 765: ICICI Securities

Buy

ICICI Securities research report on Hindalco Industries

We attended Hindalco Industries’ (HNDL) Investor Day. Key points: 1) Long-term capacity growth aspirations in India; 2) focus on value-added products dovetailing with domestic requirements; 3) speciality alumina likely to be the next growth vertical; 4) targeting long-term steady state EBITDA for Novelis at USD 600/te; and 5) enough balance sheet headroom to follow prudent capital allocation. Taking cognisance of long-term growth opportunities in India business, we raise valuation multiple for India business to 6x (earlier 5.5x). That said, we also raise capex for FY26/27E, in line with management’s guidance.

Outlook

All in all, our revised TP works out to INR 765 (earlier INR 730) on blended EV/EBITDA of 6.3x (earlier 6x) FY27E EBITDA. Maintain BUY.

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Hindalco Industries - 02042025 - icici