Hindalco Has Delivered 99% in 2021, Brokerages Say There is Further Upside

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Hindalco Has Delivered 99% in 2021, Brokerages Say There is Further Upside

By Aditya Raghunath

Investing.com -- Aluminum producer Hindalco Industries Ltd. (NS: HALC )’s shares have gained 99% in 2021 so far on the back of a massive global metals rally. Market experts say there is still more runway for the stock.

Centrum Broking has a buy call on the stock with a target price of Rs 558. It said, “Hindalco (including Utkal Alumina) reported better than expected EBITDA of Rs 24.1bn (Centrum E: Rs20bn), up 30.5% QoQ primarily on account of higher aluminum realization, which in turn was due to average LME price increasing 15% QoQ and lower hedging losses being partially offset by lower volume and higher CoP.”

Credit Suisse (SIX: CSGN ) hiked up its target price from Rs 330 to Rs 555. It said the company will deliver as its structural drivers remain intact. Credit Suisse expects Hindalco's EBITDA to rise 50% YoY in FY22 and to continue in FY23 and FY24. It forecasts higher profitability for Novelis and a strong India business. It also forecasts an 82% rise in FY22 EPS estimates and 75% rise in FY23.

Edelweiss has a Rs 500 target on the stock price based on the technicals of the company’s charts and momentum. Considering that Hindalco is currently trading at Rs 474, the stock should hit this target quickly.

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