Tuesday, 18 November 2008

Buy Hindalco below Rs 45: Mansukh Securities

Mansukh Securities and Finance has recommended investors to buy Hindalco Industries below Rs 45 for a target of Rs 90 in its November 15, 2008 research report. "Aluminium prices have come down drastically in last four months owing to the global liquidity conditions. It would reflect in lower realisations going forward for Hindalco. The outlook for the copper is also looking weak due to declining TcRc margins. Equity dilution on account of rights issue and fixed priced contracts of Novelis would impact the company’s profitability in days to come."

"Keeping in view the recent changes in the major factors we have downgraded our standalone EPS estimates for FY2009 to Rs 19.43, to factor in the lower aluminium prices in FY2009, which would lead to a demand slowdown for Aluminium globally. At the CMP of Rs 56.60, Hindalco is trading at a P/E of 2.91x FY2009 standalone EPS estimates. We recommend BUY for this scrip BELOW Rs 45 for a target of Rs 90.00," says Mansukh Securities and Finance's research report.

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Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.