06-Nov-2026 08:14:16

CLSA on Hindalco ; O-P, TP Rs 1240

Novelis’ adj. Ebitda/t of US$553 was below estimate, despite a US$39m (US$43/t) benefit from Oswego insurance recoveries. Oswego production normalised, although this resulted in higher tariff costs (US$85/t), while South Korea strike had a c.US$20/t impact Strike has since been resolved, although a similar impact is expected by Novelis in 3QFY27, while tariff headwinds should taper to near zero by 4QFY27 as onshore production increases. Bay Minette remains on track for commercial shipments from 1QFY28, with full utilisation expected within two years. Novelis expects positive FCF and deleveraging from 4QFY27, supported by tapering capex and further insurance recoveries

HINDALCO INDUSTRIES LTD

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