Hindalco surges; CLSA says stock could double in 4 years

Reuters Market Eye - Hindalco Industries Ltd surges after CLSA upgrades the stock to "buy" from "sell" and raises its target price to 215 rupees from 110 rupees.

CLSA says Hindalco's subsidiary Novelis Corp "will be a big beneficiary of the accelerating shift of global automakers from steel to aluminium given its strong franchise and upcoming capacities".

Hindalco shares could double in four years, benefiting also from "a multi-year deleveraging cycle", it says, while noting that the cost structure at Indian smelters "is not as bad as we thought."

Shares in Hindalco were trading up 6.4 percent to 174.70 rupees as of 11:19 a.m.

 

(Reporting by Abhishek Vishnoi)