Hindalco target price raised as subsidiary Novelis beats Q4 estimates: Details

Hindalco share price: Atlanta-based Novelis Inc reported a 28% year-on-year growth in operating profit or EBITDA at $514 million. The company is a wholly owned subsidiary of the Aditya Birla group's Hindalco Industries. Following the announcement of Novelis' March quarter earnings, domestic brokerage firm Nuvama Institutional Equities increased its FY25 and FY26 consolidated EBTIDA estimates by 13% and 12%, respectively.

Hindalco share price: Nuvama Institutional Equities increased its FY25 and FY26 consolidated EBTIDA estimates by 13% and 12%, respectively.

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What Nuvama Institutional Equities said on Hindalco share price?

The brokerage also increased its EV/EBITDA multiple to 6.5 times from 6 times earlier and noted that the company's management remained cautious in raising EBITDA per tonne guidance beyond $525. Nuvama maintained a 'Hold' rating on Hindalco stock and said that it would await lower entry points to re-enter the stock.

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The brokerage increased its target price to ₹651 per share from ₹508 apiece earlier. The stock will see limited upside going ahead, it said.

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"We expect debt to rise to $5.4 billion in FY26E (net debt/Ebitda of 2.4 times). Benefits of its $4.1 billion Bay Minette project (to be commissioned by FY27-end) are likely to start accruing FY28 onwards," the brokerage noted.

What Jefferies said on Hindalco share price?

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Global brokerage Jefferies maintained a 'Buy' recommendation on Hindalco and raised its price target to ₹810 from ₹700 per share earlier. The company's earnings outlook is improving with demand for beverage cans inflecting upwards, it said.

What CLSA said on Hindalco share price?

CLSA maintained a 'Buy' on Hindalco, with a target price of ₹770 per share and said that capex has been guided at $1.8 billion-$2.1 billion, which could drive up leverage but remain below 3 times.

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