Hindalco’s Analyst Meet Update - Status Quo Maintained: ICICI Securities 
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Hindalco’s Analyst Meet Update - Status Quo Maintained: ICICI Securities 

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.

ICICI Securities Report

Hindalco Industries Ltd.’s management delineated the company’s capital allocation strategy.

Free cash flow guidance stands at $1 billion-1.2 billion post-normal working capital and maintenance capex; cumulative FCF (pre-growth-capex) is guided at $5 billion-6 billion over the next five years.

Management targets deleveraging of $2.9 billion over the same period – of which $2.6 billion will be in Novelis and $0.3 billion in Hindalco (India).

Growth capital has been earmarked at $2.5 billion-3 billion over the next three years. This does not leave much room for a return to shareholders (amounts to Rs 3-4/share based on 8-10% of FCF).

Click on the attachment to read the full report:

ICICI Securities Hindalco Company Update.pdf

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