Stocks to Buy, Oct 10: PL Suggests Aditya Birla Group’s Metal Stock, TP Rs 557

Prabhudas Lilladher has recommended investors to buy large cap metal & ferrous sector stock, Hindalco Industries with target price of Rs 557 apiece. Current market price of Hindalco Industries share on BSE is Rs 481.25 per share on BSE with intraday gain of over 2%. If you buy Hindalco Industries shares at current market price of Rs 481.25, you can get potential return of 15.74%.

Valuation: According to Tushar Chaudhari - Research Analyst, Prabhudas Lilladher Pvt Ltd, "We believe HNDL is well placed amongst the metals space as a) Novelis is expected to witness gradual improvement in per ton EBITDA over next few quarters, led by resilient developed economies and gradual improvement in consumer demand from China; b) fall in thermal coal prices and opening of captive coal mines to benefit India business post FY26; and c) rising focus on high margin value added products such as FRP expansion would drive volume growth from FY26. The stock trades at EV of 6.5x/5.1x FY24E/FY25E EBITDA. Maintain 'Buy' with TP of Rs 557."

Hindalco Industries Stock Outlook & Return: Current market price of Hindalco Industries stock is Rs 481.25 per share. Its 52-week high price is Rs 508.80 per share and 52-week low price is Rs 379.90 per share, respectively. The large cap metal company has a market capitalisation of Rs 1,08,147.30 crore. Hindalco Industries shares rallied 12% in last 3-months, gained 17% in last 6-months, fell over 1% YTD, soared 18% in last 1-year, offered return of 184% in last 3-years. In last 5-years, Hindalco Industries shares gained 311%.

Hindalco Industries Financials: The company for the quarter ended June 30, 2023 announced a dip of 41% YoY in its consolidated profit to Rs 2454 crore as against the profit of Rs 4119 crore in the corresponding quarter an year ago. The Aditya Birla Group's stock stated its profit soared 2% sequentially amid recovery in Novelis and Aluminium India downstream business and steady performance by copper business.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. 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.