Hindalco: Better domestic show, Novelis outlook can help stock re-rate

Rebound in aluminium price, positive Novelis outlook boost confidence in stock

Hindalco is one of the key Indian beneficiaries of the significant rebound in base metal prices on the London Metal Exchange (LME). The company has continued to report reasonable financial performance, despite the challenges posed by the Covid-19-triggered demand disruption and slowdown. 

The stock is among the top picks of brokerages, which are anticipating further upside with an improvement in the operating environment.

The aluminium price on the LME had seen a low of close to $1,421 a tonne in April; it averaged $1,497 in the June quarter (Q1) versus $1,690 in the March quarter. With the start of economic activities worldwide,