Hindalco Best Stock In Non-Ferrous Space: Go India Advisors’ Rakesh Arora
Falling zinc prices may put pressure on Vedanta and Hindustan Zinc’s earnings, according to Rakesh Arora.
Hindalco Industries Ltd. will outperform some of its peers in the non-ferrous space, including Hindustan Zinc Ltd and Vedanta Ltd, according to Rakesh Arora of Go India Advisors.
Vedanta and Hindustan Zinc's earnings can come under pressure weighed down by falling in zinc prices, Arora, managing partner at the investment advisory, told BloombergQuint in an interaction. Zinc prices have fallen 20 percent, while aluminium prices have declined 10.5 percent in the last one month on the London Metal Exchange.
As aluminium prices have already fallen, the outlook for related stocks was not that bullish and chances of a downgrade for these would be limited, said Arora as he explained why he preferred Hindalco, which has integrated aluminium businesses. Also, a large part of its earnings come from rolling business and the U.S. which are doing well, he added.
Watch the entire conversation here: