New Delhi: Shares of Hindalco Industries surged after Asia's leading equity brokers and investment group, CLSA, upgraded the stock to “buy” from “sell” and raised its target price to Rs 215 from Rs 110.
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”.
The broking firm said the shares of the company could double in four years, benefiting also from “a multi-year deleveraging cycle.”
Analysts say Hindalco is extremely leveraged on a consolidated basis and the company may announce follow-on public issue or a QIP.
