If you are looking for best performing stocks then Hindalco Industries could be the right stock. The company's performance in the December quarter has been excellent. Foreign brokerage firm CLSA has expressed hope for better performance of Hindalco's shares. It has given a target price of Rs 800 for this stock. It has said that the company's performance in the December quarter has been as per expectations.
The company acquired Meenakshi block
CLSA wrote in its report, "The company's EBITDA was Rs 4,600 crore, which is 17 percent higher on a quarter-on-quarter basis. EBITDA was as expected." Hindalco Industries has finally acquired the Meenakshi coal block. JP Morgan has maintained its 'overweight' rating on this stock. It has given a target price of Rs 670 for the stock. The reason for this is the expectation of better performance of the company in the copper segment.
America's tariff hike may have an impact
Work is progressing at a good pace on the company's current projects. However, analysts say that it remains to be seen how much the US tariff hike will affect the company. Hindalco's management expects Novelis' margins to increase. The reason for this is that there is a possibility of a fall in scrap metal prices. Getting the Meenakshi coal block may reduce the cost of Indian operations. On the other hand, JP Morgan says that the US tariff hike will not have much impact on Hindalco.
Good performance of Indian business
Motilal Oswal's Siddharth Khemka said that Hindalco's performance has been good. Novelis' performance has been a little weak, but the company's Indian operations have been strong. Now all eyes are on the impact of US tariffs. However, there is a good scope for Hindalco to increase its capacity in the US through Novelis. Due to this, Hindalco looks in a better position than many European companies.
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18 percent return in one year
The rise in aluminium prices has played a major role in the good performance of the company's aluminium business. Apart from this, the company's product mix is also good. Novelis' volume growth has been slightly less than expected. This is due to less shipment of value-added products. Hindalco's shares have given around 18 percent return to investors in the last one year. On February 14, the company's stock closed with a slight increase at Rs 604.
