IIFL has maintained a buy rating on Hindalco Industries with a target price of Rs 154 in the long term.
Shares of Hindalco Industries ended up 6.7 per cent at Rs.
94.75 on Wednesday while the BSE Sensex closed 1861.75 points up (+6.98%) at 28,535.78.Hindalco Industries Ltd., incorporated in 1958, is a largecap company with a market cap of Rs 21282.96 crore.Investment RationaleCommentary from Aleris management highlights increasing headwinds for volumes in 2020 led by Covid-19 impact, said IIFL.
Hindalcos shares are trading attractively at 0.3 times price-to-book and 4.8 times EV/Ebitda for FY21, said IIFL.
While demand destruction in terms of volumes will impact profitability, valuations provide significant comfort, said IIFL.
FinancialsHindalco Industries' key products/revenue segments include Aluminium which contributed Rs 23610.88 crore to sales value (51.60 per cent of total sales), Copper/Copper Products which contributed Rs 22138.28 crore to sales value (48.39 per cent of total sales) for the year ending March 31, 2019.
For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 29197.00 crore, down -1.55 per cent from last quarter sales of Rs 29657.00 crore and down -12.09 per cent from last year same quarter sales of Rs 33212.10 crore.
The company reported net profit after tax of Rs 1060.00 crore in the latest quarter.