Hold Hindalco Industries; target of Rs 907: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Hindalco Industries with a target price of Rs 907 in its research report dated February 13, 2026.

Broker Research

February 13, 2026 / 12:14 IST

hold

Prabhudas Lilladher's research report on Hindalco Industries

We downgrade our rating to ‘Hold’ from ‘Accumulate’ with a revised TP of Rs907 (earlier Rs962) valuing Hindalco India biz at higher multiple of 6x EV of Sep’27E EBITDA (earlier 5.5x) on higher leverage arising from Oswego incident and potential risk of capex delays while higher LME aids India. Hindalco Industries (HNDL) delivered in-line Q3 cons operating performance, supported by strong India performance which offset drag from Novelis. Ally hedging and 1% rise in CoP has limited India EBITDA. While higher LME is supporting India, sharp rise in net debt to compensate for USD1.3-1.6b hit on Novelis FCF is erasing our TP.

Outlook

Novelis is undergoing temporary headwinds and to be keenly watched as we build in ~200kt volumes from Bay Minette in FY28. At CMP, the stock is trading at EV of 6.7x/6.2x FY27/28E EBITDA. Hold.

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