Hindalco Industries Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 98784.99 Crore) operating in Metals – Non Ferrous sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 41625.00 Crore, up 2.28 % from last quarter Total Income of Rs 40696.00 Crore and up 61.95 % from last year same quarter Total Income of Rs 25702.00 Crore. Company reported net profit after tax of Rs 2785.00 Crore in latest quarter.
Investment Rationale
The company’s revenue surged 63.6% YoY to Rs. 41,358cr in Q1FY22, due to robust growth across all business segments. EBITDA grew 219.3% YoY to Rs. 6,173cr due to strong volume growth, improved product mix and favourable macro factors. Adjusted PAT rose to Rs. 2,211cr (vs. Rs. 290cr loss in Q1FY21) after adjusting for Brazilian tax litigation and reversal of employee severance cost. The new expansion plans in Brazil and Asian countries, along with higher demand across sectors and improved operating efficiency should boost performance. Hence, we reiterate our BUY rating on the stock with a revised target price of Rs. 512 using SOTP.
Promoter/FII Holdings
Promoters held 34.6 per cent stake in the company as of June 30, 2021, while FIIs held 25.2 per cent, DIIs 20.6 per cent and public and others 19.6 per cent.
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