Global brokerage firm Nomura has initiated coverage on three aluminium stocks, assigning a ‘Buy’ rating to Vedanta Aluminium and Hindalco, while maintaining a ‘Neutral’ stance on National Aluminium Company (NALCO).
The brokerage has set a price target of ₹500 for Vedanta Aluminium, implying an upside potential of over 40%. It has assigned a target price of ₹1,100 to Hindalco, indicating a potential upside of 23%, while its ₹320 target for NALCO suggests limited upside of 2.4%.
Nomura believes Vedanta Aluminium is undergoing a favourable reset in its cost structure, which could support value creation. For Hindalco, the brokerage sees potential in expansion projects that it believes the market has yet to fully recognise.
In contrast, Nomura highlighted NALCO’s limited growth initiatives and unfavourable earnings composition as reasons for its Neutral rating.
The brokerage’s differentiated stance reflects its view that value creation in the aluminium sector will increasingly depend on control over resources and operational efficiency, rather than simply exposure to commodity price movements.