Hindalco Industries - Standalone in line, Novelis continues to outshine - Emkay

Reco: BUY
CMP: Rs 113
Target Price: Rs 134

- Standalone result in line with PAT at Rs 3.6 bn aided by 66% QoQ fall in int. cost to Rs 279 mn, on part loan refinancing; while aluminium EBIT margin fell to 8%, copper rose to 5%

- Despite low alumina and primary metal volume, higher value added products, copper volume and weak INR helped topline to remain flat at Rs 61.6 bn; EBITDA margin stood at Rs 8.4%

- Fall in costs helped Novelis to report US$277 mn of EBITDA implying US$367/ tonne for total shipment of 754 kt; among rolled product shipment of 719 kt F&B can stood at 462 kt

- Novelis continues to outperform weak standalone performances and we revise our estimates accordingly; We maintain our SOTP target price at Rs 134; Buy

Source : Equity Bulls

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