Review

HINDALCO

{Ticker : 500440 { FV: Rs1 { 52-Week H/L: Rs221.2/146.85

We had recommended Hindalco Industries in volume no. 36, issue no. 10 (dated December 30, 2019), when the scrip was trading at Rs 214.70. The company is engaged in the production of aluminium and copper products. The stock was previously recommended due to a planned expansion of its Utkal Alumina Refinery leading to a strong growth outlook for Hindalco. In Q3FY20 on consolidated basis, the company’s revenue decreased by 12.09 per cent to Rs 29,197 crore from Rs 33,213 crore in Q3FY19. PBDT for Q3FY20 stood at Rs 2,766 crore, down by 12.25 per cent as compared to Rs 3,152 crore for Q3FY19. In Q3FY20, the net profit dropped by 23.91 per cent to Rs 1,060 croreas against Rs 1,393 crore in Q3FY19. An improvement in the industry will generate growth and Hindalco will also be able to benefit from the strategic expansions undertaken as part of Hindalco-Novelis. Hence, we recommend a HOLD.