Motilal Oswal - Hindalco Industries Limited (HINDALCO) MOSL: HINDALCO (Buy)-Continued strong performance at Novelis-Reports highest-ever EBITDA in 2QFY20

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Motilal Oswal

EUR 120.00 For Business Accounts Only

MOSL: HINDALCO (Buy)-Continued strong performance at Novelis-Reports highest-ever EBITDA in 2QFY20

HINDALCO: Continued strong performance at Novelis; Reports highest-ever EBITDA in 2QFY20

(HNDL IN, Mkt Cap USD6.4b, CMP INR202, TP INR242, 20% Upside, Buy)

Novelis' adj. EBITDA grew 5% YoY to USD374m (our estimate: USD337m) - the highest-ever - led by a robust performance in North America. Volumes were up 3% YoY to 835kt (our estimate: 823kt). EBITDA/t improved by 2% YoY to USD448/t (our estimate: USD410). Adj. PAT increased 32% YoY to USD183m.

EBITDA for the company's North America (NA) business grew 13% YoY. This was on account of favorable conditions for the specialties market in the US post anti-dumping duties on China. Demand for its products within the auto market also remained strong. With favorable market conditions in the US, Novelis shipped products from other regions (Europe, Asia and South America) to NA as well.
With capacity utilization at >90%, the company seeks to optimize its portfolio. Novelis will remain selective in its exposure within specialty and use some of this capacity to cater to the can market.
Demand outlook favorable: Demand for aluminum in auto remains favorable in the US. Beverage cans outlook is also optimistic with increasing preference for lightweight and sustainable aluminum packaging.

07/11/2019 8 EN

Underlying

Hindalco Industries Limited

Hindalco Industries is engaged in the production and sale of aluminum and copper in India and internationally. Co.'s aluminum products include rolled products, extrusions, foils, primary aluminum ingots, billets, wire rods, and aluminum slabs; and aluminum chemicals, such as standard alumina, standard hydrate and specialty aluminas and hydrates for use in refractories, ceramics, fire retardant plastics, alum, and zeolite applications. Co. also offers aluminum foil and packaging solutions to pharmaceuticals, healthcare, dairy, confectionery, processed foods, personal products, and tobacco industries, as well as to the heat, ventilation, and air conditioning industries.

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INE038A01020 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: HINDALCO (Buy)-Continued strong performance at Novelis-Reports highest-ever EBITDA in 2QFY20

Vedanta Resources plc - Mergers & Acquisitions (M&A), Partnerships & Alliances

MOSL . HINDALCO: Strong earnings beat, Novelis raises its FY23 guidance

HINDALCO INDUSTRIES sees an upgrade to Slightly Positive due to a better fundamental star rating

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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