Monday, September 29, 2014


Business Line recommends buying Hindalco with a target of Rs 225. BL says that the de-allocation of coal blocks, concerns over bauxite mine closure and weak first quarter results have dragged Hindalco’s stock. 
Healthy prospects of its international aluminium and domestic copper businesses will help support earnings. Also, uncertainty on fuel and ore supply in its domestic aluminium segment can ease in the next few quarters.
At its current price of ₹157, the stock trades at 13.5 times its 2013-14 earnings. This is at a discount to its global peers Alcoa and Norsk Hydro, which are trading at multiples of 23-35 times their estimated 2014 earnings.

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