Hindalco stock correction opens up a buying opportunity
Hindalco Industries should be seen as a buying opportunity as its fundamentals remain robust from a medium and long-term perspective, experts said after the aluminium major's stock experienced its sharpest intraday fall in nine months on Thursday.
Such dips can be utilised for accumulating Hindalco shares because the stock is likely to consolidate over the next few quarters, analysts told ET.
Hindalco shares ended at ₹648.10 on the NSE on Thursday, down 8.5% from the previous close, following its US-based arm Novelis' weak earnings and an uncertain outlook.
«It is a buying opportunity for Hindalco… Those who are holding the stock should continue to hold the stock, and those who want to take a fresh entry, maybe, this is the opportunity,» said Aditya Welekar, analyst at Axis Securities.
While he expects the shares to remain under pressure for some quarters, in line with the profitability at Novelis, Welekar said they are bound to bounce back given that the company's upcoming facility at Bay Minette in the US is likely to have an operating profit of $1,000 per tonne.
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