Hindalco Share Price Target: The share price of Hindalco Industries, an Aditya Birla Group company, is expected to remain in focus in today’s trading session after its subsidiary Novelis reported quarterly results. The results have led to mixed but largely positive commentary from brokerage firms.
The decline was mainly attributed to fire incidents at its Oswego plant in the United States during September and November.
According to the company, Oswego production interruptions caused rolled product shipments to be an estimated 73 kilotonnes lower than expected, resulting in an estimated negative USD 53 million impact on Adjusted EBITDA.
Emkay Maintains Buy Rating
Despite the weak quarterly performance from Novelis, brokerage firm Emkay has maintained a Buy rating on Hindalco.
Emkay expects earnings recovery for Novelis to begin from Q2 FY27 onwards. The outlook is supported by improving scrap spreads, normalisation of tariff impact, the restart of the Oswego mill, and the commissioning of the Bay Minette project in H2 CY26.
However, leverage is expected to temporarily rise to around 4.5x in the near term before moderating to around 4.0x by the end of FY27 and declining further thereafter.
Over three months, it gained 15.75 per cent, over six months 32.56 per cent, over one year 59.29 per cent, over three years 157.69 per cent, and over ten years it delivered an overall return of 1104.08 per cent, highlighting its long-term wealth creation potential.
Overall, despite near-term pressure from Novelis’ operational challenges, Hindalco continues to demonstrate strong long-term wealth creation potential.
(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.)
