Review

HINDALCO

Ticker : 500440
FV : Rs 1
52-Week H/L:  Rs 221.20/85.05

We had previously recommended Hindalco Industries Limited (HNDL) in vol. 36, no. 10, dated December 30, 2019, when the scrip was trading at Rs 214.70 and was recommended based on the company’s strong growth outlook. It is engaged in the production of aluminium and copper products. On a consolidated quarterly front, the net sales were reported at Rs 29,318 crore in Q4FY20, decreasing by 13.12 per cent from Rs 33,745 in Q4FY19. PBDT fell by 8.67 per cent to Rs 2,717 crore in Q4FY20 from Rs 2,975 crore in Q4FY19. Net profit decreased by 43.39 per cent to Rs 668 crore in Q4FY20 from Rs 1,180 crore in Q4FY19. Novelis, a whollyowned subsidiary of Hindalco reported a healthy performance for Q4FY20. Novelis has also closed its acquisition of Aleris Corporation and has begun integrating the two companies by providing a number of strategic benefits, including product portfolio diversification and more. Thus, we recommend a HOLD.