BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Axis Securities Report
We initiate coverage on Hindalco Industries Ltd. on a positive note as the stock is currently trading at 5.4 times 12MF enterprise /Ebitda and appears cheap against its long-term average of 6.5 times enterprise/Ebitda.
While aluminium prices witnessed notable price increase year-to-date, primarily due to major disruptions led by production curbs in China, we believe Hindalco's outlook remains strong with London Metal Exchange prices staying above $2,500/tonne.
China continues with its ambitious decarbonisation plan and has imposed stringent limits on carbon-intensive industries. This supports our assumption that the country will stick to its smelting capacity cap of 45 million tonnes per annum.
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