Hindalco Industries claims that it would become more efficient aluminium producer once its three new projects start this year, but analysts are of the view that it will be a more stressed firm due to high exposure to LME aluminium prices.
A combination of internal and external factors negatively impacted Hindalco Industries' quarterly performance, forcing the Aditya Birla flagship firm to post a decline in revenue and net profit.
On Tuesday, Hindalco Industries posted a 29 per cent decline in its net profit to Rs 359 crore for the quarter ended September 30, thanks to lower realizations on weak prices of aluminium on the London Metal Exchange (LME).
Indian Stock market was trading flat on Monday morning. The BSE Sensex was marginally down at 18733 and NSE Nifty was down by 4 points at 5693. Asian markets were trading lower. Hang Seng was down by 0.3% at 22031, Straits Times was down at 3031 and Nikkei 225 was down by half per cent at 9007.
Among Indian stocks, ACC was up by nearly 2 per cent at Rs 1434. Dr Reddy's Labs and Cipla were up by 1.5% each. Kotak Mahindra Bank was also among major gainers at Rs 620.
As government is struggling to win back investors, Morgan Stanley on Monday painted a more pessimistic picture of Indian economy by slashing its growth forecast for the country's current fiscal year.
Morgan Stanley slashed its growth forecast for Indian economy to 5.1 per cent for the fiscal year of 2012-13, from its earlier projection of 5.8 per cent.
Indian Stock market has continued with its downward move on Thursday. The market has remained in negative zone for most part of the current week. The BSE Sensex was down by 23 points at 17467 and NSE Nifty was flat at 5286.
European markets have opened marginally lower. FTSE and CAC were trading flat during early hours while DAX was down by 0.6%.
Hindalco Industries has planned to commence its 1.5 million tonnes per annum (mtpa) alumina plant in the state of Orissa by January next year (2013).
A senior company executive made this declaration on May 19.
Mr. Suryakant Mishra, chief executive of Utkal Alumina International Ltd (UAIL), a completly-owned division of Hindalco, stated that the non-ferrous metals maker also anticipates beginning mining bauxite in Orrisa by October 2012,
"We are planning to commission the refinery by December end or mid-January. Mining will start by October," he said.
BSE Sensex breached 16,000 level in today's trading session and closed at four month low. BSE Sensex closed 1.83 per cent lower at 16030. For BSE Sensex, 52-week low is 15,190 and if the economic troubles continue, market experts believe that we may see further lows for Indian market. In the past three months, the markets have declined 11.7 per cent.
Among sectors, Automobiles, Banking, Capital Goods, Consumer Durables and Metals were major losers. All sectoral indices closed in the red.
Hindalco Industries has recorded a fall of 9.65% in its net profit, which remained at Rs 640 crore owing to lower tax provisioning during the last year.
Country's biggest aluminium manufacturer incurred tax expenses of Rs 139.45 crore in the fourth quarterly period of FY12 as compared to Rs 100.23 crore in the same period last year.
In spite of advanced realization, Hindalco's net sales augmented 10.5% to Rs 7,563 on elevated volumes.
Post-opening at 18,776, the BSE Sensex reached many different levels during the entire day. Earlier, the figure touched a day's high of 19,045 and even a day's low of 18,767 but at 3.05 p. m. (IST), the BSE Sensex showed the maximum up thereby reaching to the figure of 19,041 i. e. 314 points, up from its last close, reason behind being the constant buying binge in the index heavyweights.
According to the reports, the constancy has further lifted the main Indian equity benchmarks past key psychological levels in mid-afternoon trade. Also, the reports showed that the BSE Sensex easily crossed the 19,000 milestone whereas the NSE Nifty surpassed the 5,700 mark.
Hindalco Industries, a company of Aditya Birla Group has reported a net profit of Rs 460 crore for the third quarter of fiscal year 2011 ended December 31, 2010. Net profit rises 8% accompanied by higher aluminum prices.
Also, Q3 witnessed increase in the Company’s net sales and operating revenue by 12% at Rs 5,975 crore. The hike is due to better geographic mix and improved realization, despite of lower metal volumes.
Technical analyst Hitesh Chotalia has maintained 'buy' rating on Hindalco Industries Limited stock with a target of Rs 240.
According to analyst, the investors can purchase the stock with a stop loss of Rs 225.
The stock of the company, on February 01, closed at Rs 229.85 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 251.90 and a low of Rs 133.10 on BSE.
Current EPS & P/E ratio stood at 10.76 and 21.67 respectively.
Technical analyst Sudhanshu Pandey of FRR Shares and Securities has maintained 'buy' rating on Hindalco Industries Limited stock with a short-term target of Rs 220.
According to analyst, the investors can hold the stock with a stop loss of Rs 195.
The stock of the company, on November 30, closed at Rs 206.05 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 239.35 and a low of Rs 133.10 on BSE.
Current EPS & P/E ratio stood at 10.76 and 19.76 respectively.
Stock market analyst P Phani Sekhar of Angel Broking has maintained 'buy' rating on Hindalco stock with a long term target of Rs 270.
The stock can be bought around Rs 200-210.
According to analyst, the investors can achieve the target within a period of 12 months.
Today, the stock of the company opened at Rs 226 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 239.35 and a low of Rs 127.10 on BSE.
Current EPS & P/E ratio stood at 10.76 and 20.74 respectively.
Stock market analyst Somil Mehta of Sharekhan has maintained 'sell' rating on Hindalco Industries Limited stock with a target of Rs 175.
The strict stop loss for the stock is Rs 190.
Mr. Mehta said that if the stock fell below Rs 170, it may see more weakness.
Today, the stock of the company opened at Rs 1025.10 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 1077.20 and a low of Rs 530.10 on BSE.
Current EPS & P/E ratio stood at 51.12 and 20.24 respectively.
Stock market analyst Sudarshan Sukhani has maintained 'buy' rating on Hindalco Industries Limited stock to achieve a target of Rs 190.
The strict stop loss for the stock is Rs 177.
The stock of the company, on Sep 09, closed at Rs 182 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 188.20 and a low of Rs 112 on BSE.
Current EPS & P/E ratio stood at 10.29 and 17.99 respectively.
Hindalco Industries has framed a capex plan worth Rs 100 billion dor the existing financial year, going up to Rs 110 billion by the next fiscal.
Hindalco Industries has announced its first quarter financial results for the fiscal year 2010-11. Hindalco Industries is the flagship company of the Aditya Birla Group.
According to the report, the firm has managed to register a significant 11% rise in the net profit figure in the rise. Hindalco Industries has informed that it has posted a net profit of Rs 534 crore for the first quarter that ended in 30th June, 2010.
Aditya Birla Group's Hindalco Industries has reported an 11 per cent jump in its net profit. The company posted a profit of Rs. 534 crore during the quarter ending June 30 as against Rs. 481 crore during the same period last year.
The net sales for the first quarter of FY 2011, was Rs. 5,178 crore which is 33 per cent higher than the same quarter of the last fiscal.
Increase on both the fronts was the result of higher volumes coupled with better product mix as well as geographic mix. Realization during the same also increased pushing up the financial.
Stock market analyst Rajesh Jain of SMC Global Securities has maintained 'sell' rating on Hindalco stock with target of Rs 130.
According to Mr. Jain, the investors can sell the stock with stop loss of Rs 142.
Today, the stock opened at Rs 133.10 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 188.20 and a low of Rs 71.90 on BSE.
Current EPS & P/E ratio stood at 10.01 and 13.24 respectively.
Hindalco will spend around Rs 10,000 crore as a part of its growth plan in the existing financial year.
Stock market analyst Ashish Chaturmotha of Anand Rathi Securities is of the view that investors can 'sell' Hindalco Industries Ltd stock with target of Rs 120.
According to Mr. Chaturmotha, the investors can sell the stock with a stoploss of Rs 150.
If the stock fell below Rs 114, it may see more weakness.
After selling the stock, the interested investors can buy the stock again on declines for medium or long term.
Stock market analysts have maintained 'buy' rating on Hindalco Industries Ltd with an intraday target of Rs 156.
According to them, interested traders can purchase the stock above Rs 154 with a strict stop loss of Rs 150.
If the stock markets remain on the positive path then the stock price will hit a target above Rs 160.
Shares of the company, on Wednesday (Dec 23), closed at Rs 153.20 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 155.65 and a low of Rs 36.90 on BSE.