Brokerage house Morgan Stanley is overweight on Hindalco Industries as it believes that the company will benefit from improved cash flows from higher aluminium price and volume growth.
Setting a target price of Rs. 147, the brokerage house believes that cash inflows will prove as a drive deleveraging for the company.
"The cash flows should reduce the net debt to USD 7.6 billion in FY18 from USD 8.8 billion in FY16," states the company note.
"Whatever earnings downside there could be from a weaker aluminium price will be offset by the company's stable downstream and copper refining business," it adds.
As key risks the brokerage house flags weaker-than-expected aluminum price, higher energy cost in domestic operations, and continued volatility in local market.