February 15, 2017 / 16:46 IST
Hindalco Industries’ (Hindalco) Q3FY17 standalone EBITDA zoomed 76% YoY to INR 11.9bn on impressive performance of aluminium division (Al). Al EBITDA jumped 147% YoY to INR 8.8bn on higher LME Al price, cost efficiencies due to captive mines and higher volumes. However, EBITDA came marginally below consensus following slightly subdued performance of copper division.
Outlook
Going ahead, we believe that Hindalco will continue to benefit from progressively higher captive coal, product mix refinement and deleveraging. The stock is trading at 5.8x FY18E EBITDA versus 7.5x for global players. Rolling over FY19E, we have revised our SoTP‐based target price to INR 229 (INR 220 earlier), implying exit EV/EBITDA multiple of 6.4x (lower than 8 years trading band of 8.0x). Maintain ‘BUY’.
For all recommendations, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
