Hindalco Industries reported a record first-quarter profit, with net profit surging 75% year-on-year to Rs 7,013 crore and revenue jumping 32%, according to the company's Q1 earnings. The results underscored the strength of aluminum demand across automotive, packaging, and infrastructure end-markets, both in India and globally. Despite the strong financial performance, Hindalco shares declined following the results.

However, brokerages maintained their bullish stance on the stock, citing robust performance in the company's India operations, an improving downstream product mix, and a recovery at Novelis, Hindalco's wholly-owned subsidiary and a global leader in aluminum rolled products. Novelis, which derives significant revenue from automotive sheet and beverage can stock, stands to benefit from the ongoing global push toward vehicle lightweighting and rising adoption of electric vehicles, trends that are structurally expanding aluminum consumption. Several brokerages raised their target prices while retaining their Buy ratings.

JM Financial on Hindalco

JM Financial reaffirmed its positive outlook on Hindalco following the Q1 results, keeping its Buy recommendation on the stock.

Motilal Oswal on Hindalco

Motilal Oswal also maintained its bullish view on Hindalco, retaining its Buy rating after the quarterly earnings.

Hindalco Industries, the metals flagship of the Aditya Birla Group and one of the world's largest aluminum producers, operates across the full aluminum value chain in India — from bauxite mining to alumina refining, smelting, and downstream rolled and extruded products. Its subsidiary Novelis is a premier producer of flat-rolled aluminum products, serving the automotive, beverage can, and specialty markets globally. India ranks among the world's top aluminum-producing nations, and Hindalco's integrated domestic operations give it a cost advantage across the value chain.

Source: Economic Times Markets