Sell Hindalco; target of Rs 600: Emkay Global Financial

Emkay Global Financial is bearish on Hindalco recommended sell rating on the stock with a target price of Rs 600 in its research report dated November 07, 2024.

Broker Research

November 07, 2024 / 15:08 IST

sell

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Hindalco

We had recently initiated coverage on Hindalco indicating that the stock is pricing in all the positives and a part of that optimism was around Novelis in the lead up to its IPO, which was later called off. We were not convinced with its steep EBITDA/t improvement trajectory in the medium term and in playing the Bay Minette capex cycle. With the company now withdrawing its EBITDA/t guidance over concerns surrounding ‘accelerating’ tightening of scrap spreads with liberalization of scrap import by China, we think it creates a near-term overhang for the stock. We cut Novelis’s EBITDA/t estimate to USD477 from USD501 (previous guidance of USD525) for FY25. We think the pain on scrap spreads could endure for 2-4 quarters at least.

Outlook

We downgrade Hindalco to SELL from Reduce following a disappointing outlook from Novelis.

For all recommendations report, click here