Motilal Oswal is bullish on Hindalco has recommended buy rating on the stock with a target price of Rs 253 in its research report dated May 16, 2019.
Motilal Oswal's research report on Hindalco
4QFY19 EBITDA declined 15% QoQ to INR13.6b (in-line) due to lower margins in aluminum and certain one-time expenses in copper. Finance cost was down 4% QoQ (-8% YoY) to INR4.5b. Other income increased 79% QoQ/75% YoY to INR3.7b, led by mark-to-market gains on investments. PAT of INR5.1b (-29% QoQ) exceeded our estimate of INR4b due to higher other income.
The stock trades attractively at 5.7x EV/EBITDA and 8.5x P/E on FY20E. Our revised TP is INR253/sh. Maintain Buy.
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