NEW DELHI: Shares of Hindalco Industries tanked nearly 4 per cent in morning trade on Friday to hit their lowest level in three months, a day after the company reported a 17.9 per cent year-on-year drop in profit at Rs 506 crore for the March quarter compared with Rs 616 crore profit in the corresponding quarter last year.
This included numbers from Utkal operations.
Ebitda for the quarter fell 4 per cent YoY to Rs 1,733 crore on lower realisations and stronger rupee.
Global brokerage CLSA maintained its sell recommendation on the stock with a target price of Rs 180 after the March quarter numbers.The brokerage said the company's fourth-quarter numbers were weak for the Indian market but it showed decent performance from Novelis.
It highlighted that the company's India business outlook is muted due to weak aluminium prices.
It sees a 7-14 per cent YoY fall in FY20 Ebitda and added that 5.2 times FY20E EV/Ebitda is not cheap either.On the other hand, Credit Suisse maintained outperform rating on the stock with a target price of Rs 300 but cut the FY19 and FY20 earnings per share (EPS) estimate by 3 per cent and 8 per cent, respectively.Morgan Stanley retained 'equal-weight' rating on the stock with a target price of Rs 211.
It said that aluminum segment Ebitda was below estimates on higher costs but the balance sheet has improved in FY19 and the expansion of projects are on track.Shares of Hindalco traded 3.08 per cent down at Rs 188.65 on BSE around 10:30 am.