InvestorQ : Hindalco profits were really bad in this quarter. Does it make sense to buy the stock at these prices?
Riya Dwivedi made post

Hindalco profits were really bad in this quarter. Does it make sense to buy the stock at these prices?

Answer
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rhea Babu answered.
1 year ago


Hindalco reported a 28% fall in net profits to Rs.1063 crore largely driven by lower copper and aluminium prices globally. Also margins saw a constriction due to higher input costs. Total sales revenues for the quarter were also lower by 3.6% at Rs.29,972 crore. The fall was largely driven by the fall in the business of aluminium and copper.

The good news is that Novellis, the company acquired by Hindalco more than 10 years back has done extremely well and that has managed to hold the performance of the company. Due to weak demand expectations from China, the global prices of aluminium and copper have been weak and that is likely to remain an overhang for Hindalco. At the current price, it is better to avoid the stock till there is a real pick up in the copper and aluminium demand cycle. I suggest not buying the stock at these prices.