Analysts hopeful for Hindalco despite Novelis' capex revised upwards

Analysts maintained consensus 'buy' rating on Hindalco though the stock lost over 12 per cent post Q3 on Tuesday, mainly due to the sharp increase in Novelis' capex, and ended flat on Wednesday

In the October-December quarter (Q3) of FY24, Hindalco reported flat consolidated revenue year-on-year (Y-o-Y) at Rs 52,800 crore. Copper revenue rose due to higher shipments and better Average Selling Price (ASP). Revenue from the aluminium vertical and Novelis declined 3 per cent and 6 per cent Y-o-Y, respectively.

Consolidated Ebitda jumped 65 per cent Y-o-Y to Rs 5,900 crore, due to lower input prices. The blended aluminium Ebitda was at Rs 2,500 crore (up 43 per cent Y-o-Y), with an Ebitda margin of 28 per cent-plus. The Ebitda for the copper business was at an all-time high of Rs 656