Brokerages reiterate bullish bets on Hindalco shares after Q1 results; Should you buy?
Hindalco Industries share price gained nearly a percent in the early trade on Wednesday, after the company’s Q1 results largely met analysts’ estimates. Hindalco shares gained as much as 0.71% in the early trade, but soon gave up gains to trade marginally lower.
The Aditya Birla Group flagship company reported a standalone net profit of ₹600 crore for the quarter ended June 2023, a fall of 58.6% from ₹1,448 crore in the year-ago quarter. The aluminium major’s standalone revenue from operations in Q1FY24 increased 2% to ₹19,904 crore from ₹19,518 crore, YoY.
On a consolidated basis, Hindalco Industries' net profit fell 40.4% on-year to ₹2,454 crore, while revenue from operations declined nearly 9% YoY to ₹52,991 crore. However, Hindalco Q1 results were largely in-line or above most analysts’ estimates.
Read here: Hindalco Industries Q1 Results: Standalone net profit drops 58% to ₹600 crore; revenue rises 2% YoY At the operating level, the company saw better price/mix improvement, better downstream aluminum performance, lower input costs, lower energy costs and other expenses during the quarter, analysts said. Here’s what brokerages have to say on Hindalco Q1 results and Hindalco share price: Motilal Oswal Financial Services believes that Hindalco Industries reflects strongly on long-term opportunities and remains confident on the company’s ability considering its leadership position in both beverages can and automotive markets.
Considering robust domestic demand aided by higher demand from EV and consumer durables, higher spend on infrastructure and construction and higher public and private sector capex, we have raised our FY25E EBITDA/ APAT by 4%/10%, Motilal Oswal said. The brokerage reiterated its “Buy’ rating on the
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