InvestorQ : Should HINDALCO be bought now? Is it the right time?
Rajkumar made post

Should HINDALCO be bought now? Is it the right time?

Answer
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Purvesh answered.
1 year ago


Hindalco has been in the news for the wrong reasons in the recent past. Its Canadian unit, Novelis, had reported below-par performance and that has affected the price of the stock. Also, there have been quite a few hitches in Novelis proposed acquisition of Aleris.
On top of that, the trade ear has led to fears of weakness in China and that has raised doubts over the demand for aluminum. Hence the price of aluminum has been under pressure on the LME.
The stock is currently quoting at Rs.190 and that is P/E ratio of around Rs.31/share.That is fairly steep by its own historical valuations. Any purchase can only be down for the long term and even then the assumption is that the metals cycle turns around.