Why brokerages remain positive on Hindalco stock despite a 14% fall on Novelis shocker?

economictimes.indiatimes.com:

Hindalco Industries shares on Wednesday extended their losses to over 13% in two sessions notwithstanding a 71% year-on-year (YoY) jump in its December quarter net profit as the Novelis capex shocker weighed on the stock. However, the intensity of decline was substantially lower on Wednesday with less than 1% fall around 11 am.
A clutch of brokerages remains optimistic about the long-term story of Hindalco expecting the company to benefit from Novlis capex, over time. While Jefferies, Motilal Oswal and JM Financial have reiterated their buy views, Kotak Institutional Equities has an 'Add' stance. Nuvama on the other hand has recommended a hold and cut the price target.

Hindalco Industries on Tuesday reported a 71% YoY growth in its consolidated net profit at Rs 2,331 crore for the quarter ended December 2023. The profit stood at Rs 1,362 crore a year ago. Revenue from operations in the third quarter fell marginally to Rs 52,808 crore from Rs 53,151 crore in the same quarter of last year.

Read more: Hindalco Industries Q3 Results: Profit jumps 71% YoY to Rs 2,331 crore

Today marks a decline for the fourth continuous session where the stock has lost nearly 16% in stock price.
Here's what brokerages recommended:

Jefferies: Buy | Target: Rs 610

Jefferies has retained a buy rating on Hindalco Industries' stock for a price target of Rs 610, which has been slashed 20% from Rs 725, earlier. While the US brokerage prefers Coal India over Hindalco, it expects a better fourth quarter from Novelis along with India