Hindalco Industries Share Price: Hindalco Industries’ share price jumped 6 per cent in early trades on Friday, May 27 after the company declared its March quarter results on Thursday evening. The shares have hit a 52-week high of Rs 636 and 52-week low of 359.80. The shares have hit an upper price band of 448.50 and lower price band of 367. Hindalco has performed better than its peers. The company on Thursday reported a doubling of consolidated profit at Rs 3,851 crore in the March quarter, a record high for any quarter, compared with Rs 1,928 crore in the same quarter last year. Consolidated revenue for the fourth quarter rose 38 per cent to Rs 55,764 crore compared with Rs 40,507 crore in the corresponding quarter last year.
There is a rise of 11 per cent in the net revenue from the net revenue of Rs 50,272 crore registered in the previous quarter. The consolidated net profit of Hindalco has registered a growth of nearly 300 per cent to Rs 13,730 crore from Rs 3,483 crore recorded in the financial year 2021.
When it comes to dividend, the board of Hindalco has recommended a dividend of 400 per cent or Rs 4/share for current financial year as against 300 per cent or Rs 3/share in the last financial year. Hindalco Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 26, 2022, inter alia, has recommended a dividend @ Rs. 4 per equity share i.e 400 per cent of face value of Re. 1/- each for the year ended March 31, 2022, subject to approval of shareholders at the ensuing Annual General Meeting of the Company.
Should Investors Buy, Sell or Hold Hindalco Shares?
Axis Securities, said: “Hindalco reported a strong set of numbers with consolidated revenue increasing by 38 per cent YoY and 11 per cent QoQ at Rs 55,764 Cr in line with our estimate of Rs 54,697 Cr. EBITDA stood strong at Rs 7,597 Cr, up 30 per cent YoY, flat QoQ, and in line with our estimate. The YoY growth was led by higher EBITDA from Aluminium India on the back of strong Aluminium prices. Flat EBITDA performance QoQ was led by the drop in Novelis’ EBITDA mainly due to higher energy prices in Europe. Adjusted PAT stood strong at Rs 3,851 Cr, up 100 per cent YoY and 5 per cent QoQ, but missed our estimate due to higher depreciation and interest expense. Deleveraging continued in the quarter with Net Debt at Rs 39,096 Cr as of Mar’22 vs Rs 43,733 Cr as of Dec’21, with Net-debt to EBITDA improving to 1.36x in Q4FY22 vs 1.62x in Q3FY22. The company declared a dividend of Rs 4/share at a 6.5 per cent payout ratio.” Further, the brokerage house has retained a ‘BUY’ call but with a lower target price of Rs 510.
“We cut our FY23 EBITDA/PAT estimate by 16 per cent /22 per cent, at the consolidated level, driven by a 28 per cent reduction in India EBITDA due to higher coal costs. We expect the coal crisis to dissipate in the next one-to-two quarters,” Motilal Oswal said in a note.
The brokerage house maintains its ‘buy’ rating with a SoTP-based target price of Rs 555 per share. An extended coal crisis remains the key risk.
Broking house Jefferies has maintained the ‘hold’ rating on the stock and cut the target to Rs 440 per share. The EBITDA was down 1 per cent QoQ, but 4 per cent above estimate. India aluminium margin has peaked, while Spot aluminium is already 13 per cent below Q4, it said.
After two strong years, Jefferies expects the EBITDA and EPS to fall 6-13 per cent on-year in FY23. The stock is trading above its long-term average despite a deteriorating global outlook.
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