2021-08-10 Hindalco Industries .. Geojit BNP Paribas


442.05 512.00 442.05
(5.94%) 9.33 Buy


EBITDA grew 219.3% YoY to Rs. 6,173cr due to strong volume growth, improved product mix and favorable macro factors. Adjusted PAT rose to Rs. 2,211cr (vs. Rs. 290cr loss in Q1FY21) after adjusting for Brazilian...

2021-08-09 Hindalco Industries .. ICICI Securities Limited

434.70 525.00 434.70
(7.73%) 12.11 Buy

Hindalco Industries

Novelis has leveraged its extensive recycling footprint and favourable market conditions to increase its recycled content to 61% in FY21 Novelis reported a healthy performance in Q1FY22. For the quarter, it reported sales volume of 973 KT, higher than our estimate of 950 KT. Excluding non-recurring tax litigation benefit, adjusted EBITDA/tonne for...

2021-08-09 Hindalco Industries .. SMC online 436.65 436.65
(7.25%) Results Update

Hindalco Industries Limited

Hindalco Industries, Q1FY21 Improvement visible in all business segments Hindalco Industries consolidated net sales increased 63.58% to Rs 41358 crore in Q1FY22 compared to Q1FY21. Sales of Aluminium segment has gone up 41.28% to Rs 6,267.00 crore (accounting for 14.97% of total sales). Sales of Copper segment has gone up 134.05% to Rs 7,094.00 crore (accounting for 16.94% of total sales). Sales of Others segment has gone up 69.39% to Rs 83.00 crore (accounting for 0.20% of total sales). Sales of Novelis segment has...

2021-08-07 Hindalco Industries .. Prabhudas Lilladhar

426.95 500.00 426.95
(9.68%) 6.77 Buy 2021-08-05 Hindalco Industries .. Motilal Oswal

443.10 520.00 443.10
(5.69%) 11.04 Buy

Margin outlook remains strong

We raise HNDLs FY22/FY23 EBITDA estimate by 3%/7% Novelis, Hindalcos wholly-owned subsidiary, reported record-high adj EBITDA of USD508m (adj for one-off income of USD47m) on the back of record-high margins of USD522/t (+2% QoQ). Novelis should see mix improvement in 2HFY22 and FY23 as the share of auto volumes should increase on account of capacity additions. We raise our consolidated FY22E/FY23E EBITDA by 3%/6%, factoring in a higher aluminum price assumption (+3%/7% to USD2,375/USD2,300 per...

2021-05-25 Hindalco Industries .. ICICI Securities Limited


391.20 475.00 391.20
(19.71%) 1.43 Buy

Hindalco Industries

For FY22, the company has additionally hedged 5% of domestic aluminium volume at US$2344/tonne. Earlier for FY22, Hindalco had already hedged ~28% of its domestic aluminium volume at US$1840/tonne. Hence, now...

2021-05-24 Hindalco Industries .. SMC online 391.20 391.20
(19.71%) Results Update


20.69% of total sales). Sales of Others segment has gone up 7.81% to Rs 69.00 crore Aluminium segment has gone up 12.64% to Rs 5,969.00 crore (accounting for 14.51% of total (accounting for 0.17% of total sales). Sales of Novelis segment has gone up 34.42% to Rs...

2021-05-22 Hindalco Industries .. Motilal Oswal

389.30 475.00 389.30
(20.29%) Target met Buy

Outlook strong on higher LME prices

HNDLs 4QFY21 earnings for the India business was strong, as expected, with EBITDA up 23% QoQ to INR18.8b on higher LME prices. Consolidated net debt declined INR64b QoQ to INR474b and net debt/EBITDA ratio declined to 2.6x (v/s a peak of 4x post the Aleris acquisition). We broadly maintain our estimates and reiterate HNDL as our top nonferrous pick. Despite rising costs, we estimate India EBITDA/t in FY22E to be the highest ever in the last 10 years at USD865/t. We expect 35% EPS...

2021-02-23 Hindalco Industries .. Motilal Oswal

333.05 390.00 333.05
(40.61%) Target met Buy 2021-02-15 Hindalco Industries .. SMC online 302.70 302.70

Hindalco Industries

corresponding previous year period. Operating margins of the company rose 340 bps to 14.9% leading to 55% increase in operating profits to Rs 5198 crore. Other income rose 9% to Rs 323 crore. PBDIT increased 51% to Rs 5521 crore. Interest cost fell...

2021-02-15 Hindalco Industries .. ICICI Securities Limited

291.40 309.00 291.40
(60.71%) Target met Hold

Hindalco Industries

Hindalcos wholly-owned subsidiary Novelis also reported a healthy operational performance for Q3FY21, wherein its shipments came in at 933 KT (our estimate: 925 KT). Novelis achieved a record EBITDA/tonne of US$537/tonne (our estimate US$490/tonne). Adjusted EBITDA was at US$501 million, higher than our estimate of US$453 million. Novelis reported a healthy Q3FY21 performance on the back of organic growth, favourable metal benefits and a net US$50 million positive EBITDA contribution from the acquired Aleris business. On the balance sheet front,...

2021-02-11 Hindalco Industries .. Motilal Oswal

290.80 325.00 290.80
(61.04%) Target met Buy

Outlook strong on higher LME prices

3QFY21 earnings for its India business was strong, as expected, with EBITDA up 20% QoQ to INR15.2b on higher LME prices. Consolidated net debt declined INR42b QoQ to INR538b (INR623b in 1QFY21) and net debtto-EBITDA declined to 3.1x (3.8x in 1QFY21). We broadly maintain our FY21E/FY22E estimate and reiterate HNDL as our top non-ferrous pick. We expect 26% EPS CAGR over FY21-23E driven by better margin and continued deleveraging....

2021-02-04 Hindalco Industries .. Prabhudas Lilladhar

262.05 305.00 262.05
(78.71%) Target met Buy 2020-11-11 Hindalco Industries .. SMC online 210.55 210.55

Hindalco Industries

Hindalco Industries Limited, a global leader in aluminium and copper, announced consolidated results for the quarter ended September 30, 2020. Despite a one-time impact of Rs.1,398 crore on account of the divestiture of the Lewisport unit of Aleris, the Company reported a...

2020-11-10 Hindalco Industries .. Prabhudas Lilladhar

204.05 230.00 204.05
(129.50%) Target met Buy

Company Update - Margin guidance further revised upward - BUY

Company witnessed strong recovery across the segments except Aerospace. All plants are operating at near full capacity with margins in guided range. Strong margins and stable volumes would help reduce debt by ~10% every year with Net debt/EBITDA falling below 3x by FY23. However, divestment of Aleris Lewisport facility came as a negative due to low valuations at US$330mn (PLe:US$600mn), ~30% below the estimated investment of ~US$500mn on the facility. While, strong margins trajectory would help in offsetting the impact of lower valuations realised on divestment of assets....

2020-11-10 Hindalco Industries .. Motilal Oswal

204.05 275.00 204.05
(129.50%) Target met Buy

Outlook strong; valuations attractive

Higher LME and lower cost to boost profitability Hindalco (HNDL)s 2QFY21 results were strong, as expected. India EBITDA increased 43% QoQ to INR12.7b on LME recovery. With integrated CoP guided flattish v/s 2QFY21 and improved LME, Hindalcos profitability is expected to remain high despite ~58% of LME being booked at lower LME for 2HFY21. We broadly maintain our FY21/FY22 estimate. Hindalco remains our top pick in the Metals sector on expected deleveraging in FY22E. This would...

2020-11-09 Hindalco Industries .. Motilal Oswal

194.70 267.00 194.70
(140.52%) Target met Buy

Novelis margin surprises positively

Hindalco (HNDL)s subsidiary Novelis 2QFY21 EBITDA surprised with 20% YoY growth to USD455m (est. USD348m). This was led by 11% YoY volume growth (Aleris acquisition) and adj. EBITDA/t of USD493 (est. USD396). Management has raised the sustainable EBITDA margin guidance for Novelis to USD480500/t (from USD450475/t). We raise our FY21E EBITDA by 7%, factoring in strong margins for Novelis. Deleveraging is also playing out well, with strong FCF and asset divestitures while the sale of Duffel has been completed, the sale of Lewisport has been...

2020-10-26 Hindalco Industries .. Motilal Oswal

174.45 257.00 174.45
(168.44%) Target met Buy

Volume outlook continues to strengthen

Hindalco (HNDL) remains our preferred non-ferrous pick owing to its (a) robust volume recovery both in India and Novelis, (b) strong primary aluminum business profitability given its low-cost integrated aluminum operations in India (in top quartile globally) and higher LME, (c) solid FCF generation, which should reduce leverage sharply, and (d) reasonable valuation. With ~70% EBITDA contribution now coming from the non-LME business (Novelis), we also see relatively higher stability in HNDLs earnings. While we expect aluminum prices to sustain on the back of demand recovery,...

2020-08-18 Hindalco Industries .. Geojit BNP Paribas

196.25 206.00 196.25
(138.62%) Target met Hold


Hindalco reported net sales of Rs. 25,283cr, a decline of 15.6% YoY due to sharp decline in its aluminum and copper businesses. Aluminum business net revenue fell to Rs. 4,436cr (-19.2%YoY) majorly impacted by lower aluminum prices. Aluminum metal sales Q1FY21 sales was down 5.3% YoY to 303Kt due to low demand in infrastructure and industrial segments. Copper business fell 34.0% YoY to Rs. 3,031cr due to lower volumes and realization of copper and by-products. Novelis revenue reached to Rs....

2020-08-17 Hindalco Industries .. Prabhudas Lilladhar

196.25 215.00 196.25
(138.62%) Target met Buy

Q1FY21 Result Update - Aluminium holds the show, Maintain BUY

Hindalco (HNDL) reported Q1FY21 earnings in line with our expectation. Improvement in prices and lower cost of production (CoP) shall continue to support AL earnings. While, Copper (CU) operations earnings would remain under pressure in FY21e due to 23% reduction in Treatment/Refining charges (Tc/Rc) for CY20 at 15.9/lb, planned shutdowns and weak demand....

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