Hindalco, Vedanta trading at discount; firm outlook for base metal prices

Rising volumes to boost earnings, say analysts

Non-ferrous majors such as Vedanta and Hindalco have been in focus after tariff hike talks by the US on aluminum, and consequently, the volatility in global base metal prices. Correction in the markets added to the woes. The share prices of Vedanta and Hindalco have dropped 19-23 per cent from their highs in January. 

However, analysts see this fall as an opportunity because the business outlook for these two companies remains firm, while the current stock valuations are assuming much lower profitability going ahead. Global base metal average realisations may continue to improve or at least remain stable, say analysts.