Hindalco shines as foreign broker initiates coverage

Hindalco Industries advanced 2.53% to Rs 225 at 13:35 IST on BSE after a foreign brokerage firm reportedly initiated coverage on the stock with an outperform rating.

Meanwhile, the S&P BSE Sensex was down 4 points, or 0.01% to 32,510.94

On the BSE, 8.72 lakh shares were traded in the counter so far, compared with average daily volumes of 12.03 lakh shares in the past one quarter. The stock had hit a high of Rs 226.25 in intraday trade, which is also a 52-week high for the stock. The stock had hit a low of Rs 221 so far during the day. The stock had hit a 52-week low of Rs 132.10 on 29 July 2016.

The stock had outperformed the market over the past one month till 31 July 2017, rising 15.17% compared with 5.15% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 9.64% as against Sensex's 8.67% rise. The scrip had also outperformed the market in past one year, surging 60.59% as against Sensex's 16.11% rise.

The large-cap company has equity capital of Rs 224.35 crore. Face value per share is Re 1.

A foreign brokerage firm reportedly initiated coverage on the Hindalco Industries stock with an outperform rating with 12-month price target at Rs 270. Hindalco continues to enjoy a favourable position on the cost curve, the brokerage firm said. Low costs of production will ensure steady free cash flow generation in India and domestic coal prices remaining benign will also aid the company, it said.

Hindalco Industries' net profit rose 25.6% to Rs 50252 crore on 26.93% rise in total income to Rs 11248.66 crore in Q4 March 2017 over Q4 March 2016.

Hindalco Industries, metals flagship company of the Aditya Birla Group, is the industry leader in aluminium and copper.

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