Hindalco Industries shares: Motilal Oswal reiterates buy call, stock trading lower

Shares of Hindalco Industries Ltd were trading lower today after brokerage Motilal Oswal reiterated its buy call for the metal major. Hindalco Industries shares fell over 1% to Rs 514 against the previous close of Rs 522.10 on BSE. Market cap of the firm stood at Rs 1.16 lakh crore. The brokerage has a target of Rs 600 for Hindalco Industries stock.

“Volume growth across geographies is expected to remain stable going forward. Hindalco Industries has already secured long-term contracts from marquee customers for the Bay Minette facility, offering Novelis future revenue visibility. HNDL expects Novelis to post EBITDA/t of $600 in the medium-to-long term.      We reiterate our BUY rating on Hindalco Industries with an SOTP-based target price of Rs 600. The stock is trading at 5.4x FY26E EV/EBITDA and 1.1x FY26E P/B,” said Motilal Oswal.

In the beginning of this month, global brokerage CLSA upgraded Hindalco Industries shares to ‘buy’. It assigned a price target of Rs 635 to the Aditya Birla Group firm. CLSA said Hindalco’s existing businesses are strong and likely to see a gradual improvement.

In the current session, total 0.73 lakh shares of Hindalco Industries changed hands amounting to a turnover of Rs 3.75 crore.

Hindalco Industries shares have a one-year beta of 0.5, indicating low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Hindalco Industries stands at 44.1, signaling it's trading neither in the overbought nor in the oversold zone. Hindalco Industries shares are trading lower than the 5 day, 10 day, 150 day, 200 day but higher than the 20 day, 30 day, 50 day and 100 day moving averages.    

The stock is down 11.50% in a month.

CLSA said concerns regarding the company are overdone.

The stock fell as Hindalco's US-based subsidiary Novelis announced a delay in completion and an increased capital for the Bay Minette project.

The project’s completion is likely to be delayed by 9-12 months and now expected to finish in the second half of 2026. The delay means lower returns, disappointing for both management and investors.

Novelis is a maker of flat-rolled aluminium products used in building products ranging from beverage cans to aeroplanes.