Tuesday 4 November 2008

Angel Broking neutral on Hindalco

Angel Broking has manitained its neutral rating on Hindalco Industries in its November 3, 2008 research report. "In 2QFY2009, Hindalco posted a yoy standalone Topline growth of 14.4% to Rs 5,683 crore (Rs 4,967 crore), which was mainly due to higher Aluminum prices, rupee depreciation and higher volumes of Alumina and Aluminium led by Brownfield expansion. Hindalco’s Standalone Net Profit grew comparatively slower rate of 12% yoy to Rs 720 crore (Rs 643 crore) in 2QFY2009."

"We believe that the weak outlook for the Copper business due to declining Tc/Rc margins, expected decline in the demand for aluminium and weak price outlook and significant equity dilution on account of the Rights issue would be the negatives that would impact the company’s performance going ahead. Novelis’s fixed price contracts would also be a drag on the company’s Profitability in the near term. Hence, we remain Neutral on the stock," says Angel Broking's research report.

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Source: Moneycontrol

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