Hindalco Industries rises over 8%; do you know why?

Hindalco Industries rises over 8%; do you know why?

by 5paisa Research Team Last Updated: 2022-12-11T03:29:09+05:30

S&P BSE Metal index is up by about 5.6%.

Hindalco Industries Ltd has been trending in the metals sector as it has been today’s top gainer in the S&P BSE Metal index followed by Tata Steel (up by 6.8%). The share has been trending higher today. The scrip opened at Rs 534.50 and made a day’s high of Rs 580. The stock is currently trading at about Rs 577.70, up by 8.22% on the BSE.

The company has entered into a share purchase agreement (SPA) with Terrabel Empreedimentos Ltd, a Brazilian company to divest entire equity shareholding from its subsidiary- Hindalco Do Brazil. Also, several brokerage houses have been bullish on the company recently. The stock price movement is also largely supported by index movement.

The company had recently announced that its wholly-owned subsidiary - Novelis Inc is going to invest about Rs 375 crore to build a recycling centre at its Ulsan Aluminum joint venture in South Korea.

Talking about its recent quarterly results, in Q3FY22, revenue grew by 43.81% YoY to Rs 50272 crore from Rs 34958 crore in Q3FY21. On a sequential basis, the top-line was up by 5.47%. PBIDT (Ex OI) was reported at Rs 7312 crore, up by 40.67% as compared to the year-ago period and the corresponding margin was reported at 14.54%, contracting by 33 basis points YoY. PAT was reported at Rs 3657 crore, up by 81.13% from Rs 2019 crore in the same quarter for the previous fiscal year. The PAT margin stood at 7.27% in Q3FY22 expanding from 5.78% in Q3FY21.

Hindalco Industries Limited, a metal flagship company of the Aditya Birla Group, is the industry leader in aluminium and copper. Hindalco has two main streams of business Aluminium and Copper.


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