2025-03-17 21:46:06
Latest Post
Kairosoft AI Solutions Ltd launches Volkai Application on the IOS App Store
Shilpa Biologicals Pvt Ltd signs strategic development partnership with mAbTree Biologics AG for a novel immunooncology asset
Birla Estates Debuts in Pune with Luxury Residential Project, Birla Punya 
City Union Bank opens two new branches on March 17, 2025
NBCC India Ltd receives order worth Rs. 44.62 crores
Research
Q3FY21 Result Update - Hindalco - ICICI Direct
Posted On : 2021-02-16 12:12:40( TIMEZONE : IST )
Hindalco reported a healthy Q3FY21 performance. Topline of the India business came in at Rs. 11425 crore (up 11% YoY, 19% QoQ). For Q3FY21, aluminium segment of the India business posted sales volume of 315000 tonnes (our estimate: 319000 tonnes), while copper segment reported sales volume of 73000 tonnes (our estimate: 73000 tonnes). EBITDA of the India business came in at Rs. 1528 crore, higher than our estimate of Rs. 1413 crore. Ensuing PAT of Hindalco's India business was at Rs. 495 crore, higher than our estimate of Rs. 358 crore. For the quarter, Hindalco's wholly owned subsidiary Novelis also reported a robust performance. Total flat rolled product shipments of Novelis were at 933 KT, higher than our estimate of 925 KT. Novelis' adjusted EBITDA per tonne was at US$537/tonne, higher than our estimate of US$490/tonne.
Valuation & Outlook
For the quarter, both Indian operations as well as Novelis reported a healthy performance. Furthermore, Hindalco also reduced its consolidated net debt levels. During Q3FY21, Hindalco repaid Rs. 4199 crore. Subsequently, consolidated net debt as on December 31, 2020 was at Rs. 53802 crore compared to Rs. 58001 crore as on September 30, 2020. Going forward, in the near term, Hindalco plans to unveil its capital allocation policy, which would be a key monitorable. We introduce FY23E estimates and roll over our valuations to FY23E. We value the stock on a SoTP basis and arrive at a target price of Rs. 309 (earlier Rs. 240). On the back of the recent run-up witnessed in the stock, we downgrade the stock from BUY to HOLD.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Hindalco_Q3FY21.pdf
Shares of HINDALCO INDUSTRIES LTD. was last trading in BSE at Rs.291.6 as compared to the previous close of Rs. 290.7. The total number of shares traded during the day was 283391 in over 2233 trades.
The stock hit an intraday high of Rs. 297.3 and intraday low of 289.1. The net turnover during the day was Rs. 82921642.
