Aluminium Stocks to Buy: JP Morgan has turned bullish on Indian aluminium producers, upgrading Vedanta and Hindalco to ‘Buy’ from ‘Neutral’ on expectations of sustained strength in aluminium prices and improving earnings visibility. The brokerage raised its target price on Vedanta to Rs 850 from Rs 680, implying a 22 per cent upside, and on Hindalco to Rs 1,125 from Rs 875, offering a 20 per cent upside. JP Morgan said aluminium prices are likely to stay elevated for longer amid geopolitical risks in West Asia, prompting the brokerage to lift its LME aluminium price forecasts for FY27 and FY28 to USD 3,250 and USD 3,150 per tonne, respectively.
Vedanta share price spiked nearly 3 per cent to hit an intraday high of Rs 709 apiece. It later pared gains to trade 2.75 per cent higher at Rs 706 apiece as of 09:50 AM
While the stock slipped 2.12 per cent over the past month, this decline was narrower than the Nifty Next 50’s 7.54 per cent fall, indicating relative resilience amid broader market weakness.
The stock is up 17.10 per cent year‑to‑date compared with a 10.45 per cent decline in the index. Over one year, Vedanta has surged 88.66 per cent, far outperforming the Nifty Next 50’s 4.78 per cent gain.
The outperformance widens further over three and five years, with Vedanta delivering returns of 158.31 per cent and 197.95 per cent, respectively, versus index gains of 63.38 per cent and 77.97 per cent
Hindalco share price also jumped nealry 3 per cent to hit an intraday high of Rs 964 apiece, but later pared gains to trade 2.68 per cent higher at Rs 952 apiece as of 09.50 AM
Hindalco’s stock has shown solid near‑term performance, comfortably outperforming the benchmark NIFTY 50. Over the past one week, the stock advanced 7.94 per cent, higher than the index’s 2.23 per cent gain. On a one‑month basis, Hindalco slipped 0.44 per cent, but the decline was far narrower than the NIFTY 50’s 6.63 per cent fall.
On a year‑to‑date basis, Hindalco has gained 6.67 per cent, contrasting sharply with a 12.69 per cent decline in the NIFTY 50. Over the past one year, the stock has risen a robust 69.93 per cent, well ahead of the index’s modest 3.01 per cent increase.
Over three years, Hindalco has delivered returns of 135.57 per cent compared with 29.72 per cent for the NIFTY 50. Over five years, the stock has surged 171.05 per cent, more than triple the index’s 54.06 per cent gain.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
