Buy Large Cap Aditya Birla Group’s Metal Stock, TP Rs 550: Motilal Oswal

Leading brokerage firm Motilal Oswal, in its latest report dated September 20, 2023, recommended large cap metal & ferrous sector stock Hindalco Industries Ltd with target price of Rs 550 per share. Current market price of Hindalco Industries share is Rs 480.00 per share with intraday gain of 0.13% on BSE. If you buy Hindalco Industries stock at current market price, you can fetch likely upside of 14.58%.

Hindalco (HNDL) plans to incur a capex of USD4.4b over the next five years for several projects, including FRP capacity expansion in USA, upstream expansion at Utkal, special alumina business capacities and downstream aluminum capacities, among others, said Motilal Oswal's report. Check details below:

Hindalco Industries Stock Outlook & Return: Current market price of Hindalco Industries share is Rs 480.00 per share on BSE. Its 52-week high price is Rs 508.80 per share and 52-week low price is Rs 358.80 per share, respectively. The mid cap company has a market capitalisation of Rs 1,07,866.39 crore. Hindalco Industries shares gained 14% in last 3-months, soared 22% in last 6-months, fell 1.41% YTD, rose 17% in last 1-year, and offered return of 196% in last 3-years.

Hindalco Industries Dividend: The company earlier this year declared final dividend of Rs 3.00 per equity share with ex-dividend date fixed as August 14, 2023. The company so far declared 23 dividends since July 2, 2001. It has a dividend yield of 0.62%, according to Trendlyne.

Hindalco Industries Valuation: According to the analyst, "We believe HNDL is adding downstream capacities at the right time to capture the robust growth opportunities. Despite near-term headwinds due to a slowdown in China and its impact on non-ferrous prices, the long-term outlook remains positive. We reiterate our BUY rating on the stock with our SOTP-based TP of INR 550."

HNDL has a strong balance sheet and all the incremental capex will be funded via internal accruals, added Motilal Oswal.

Hindalco Industries About: Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group. A US$28 billion metals powerhouse, Hindalco is an industry leader in aluminium and copper. Hindalco's acquisition of Aleris Corporation in April 2020, through its subsidiary Novelis Inc., has cemented the company's position as the world's largest flat-rolled products player and recycler of aluminium. Hindalco's state-of-art copper facility comprises a world-class copper smelter and a fertiliser plant along with a captive jetty. The copper smelter is among Asia's largest custom smelters at a single location, according to the official website of Hindalco.

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The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.