Hindalco vs Vedanta: Which metal stock should you pick for long term?
₹419 in intra-day deals today, May 3, 2024. The stock has now advanced 101.5 percent from its 52-week low of ₹207.85, hit on September 28, 2023. Meanwhile, Hindalco touched its all-time high of ₹661.30 last month on April 26, 2024, and is currently just 2 percent away from the peak.
Currently trading at ₹646, it has rallied over 64 percent from its 52-week low of ₹398.00, hit on May 25, 2023. Moreover, in the long term, 3 years, again Hindalco has emerged as the winner. It has surged 78 percent while Vedanta jumped 61 percent.
Read here: Tata Motors vs M&M: Which auto major should you pick for the long term? In the March quarter, Vedanta reported a 27 percent decline in its net profit to ₹1,369 crore on the back of surging finance costs and weak prices of metals such as zinc, copper, and aluminium. It had posted a net profit of ₹1,881 crore in the same period last year. Meanwhile, its revenue from operations fell 6 percent YoY to ₹34,937 crore in Q4FY24.
The company said that short-term and long-term demand remains robust in India. "The demand is expected to remain strong in upcoming years due to thriving infrastructure, manufacturing, automobile and EV/renewable sectors," Vedanta said in an investor presentation. Meanwhile, Hindalco has not yet reported its March quarter results.
In the December quarter, the firm reported a 71 percent YoY growth in its consolidated net profit at ₹2,331 crore versus ₹1,362 crore a year ago. Meanwhile, its revenue from operations in the third quarter fell marginally to ₹52,808 crore from ₹53,151 crore in the same quarter of last year. “The copper business registered a record EBITDA, up 20 percent YoY on the back of strong volume growth and robust operations," Hindalco managing director
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