Brokerage Houses View on Hindalco Industries

With Q1 Fy 2014 results slightly disappointing, most of the global brokerage firms have published their ratings on the India's Largest Aluminium Company. Some have retained their previous rating while others have reduced their price target on the stock. 

Following is the list of brokerage houses and their rating and price targets for Hindalco Industries.

Buy Hindalco Industries

InvestorZclub is recommending a buy on dips on Hindalco Industries in the region of Rs.130 to 135 for 1 year target return of at least 30%. Some of strong reasons for the recommendation are:

1. Trading at discount to current year FY 2012 Book Value. The FY-12 book value for the stock is expected to be Rs.165 while FY-13 book value should be at least Rs.175. The PE ratio for the current year is around 12 times.

2. The European subsidiary - Novelis which is cash positive but reports loss on net level is selling its loss making foil business in three countries which could bring it to green next year provided aluminium prices are supportive.