Pick of the Week: Hindalco

FOR MEDIUM TERM BUY BUY BUY HINDALCO
Equity – 122.71Cr
BSE Code – 500440
CMP – 138.05

BUY HINDALCO @ 138 – 139 TGT 158 - 160

Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is structured into two strategic businesses — Aluminium and Copper — and is an industry
leader in both. A metals powerhouse with a turnover of US$ 14 billion, Hindalco is the
world's largest aluminum rolling company and one of the biggest producers of primary
aluminum in Asia. Its copper smelter is today the world's largest custom smelter at a single
location.

Established in 1958, Hindalco commissioned its aluminums facility at Renukoot in
eastern U.P. in 1962 and has today grown to become the country's largest integrated
aluminum producer and ranks among the top quartile of low cost producers in the
world.

With a strategic intent to achieve vertical integration in the copper business, Hindalco
acquired two captive copper mines in Australia — Nifty and Mt. Gordon through
Aditya Birla Minerals Limited. The aluminum division's product range includes alumina chemicals, primary aluminum ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels.

The company's copper product range includes copper cathodes and continuous cast
copper rods. It also produces precious metals, sulphuric acid, phosphoric acid, diammonium
phosphate (DAP) and other phosphoric fertilizers, and phosphor-gypsum.
Buzzingstock 05.07.08

In May 2007, Novelis became a Hindalco subsidiary with the completion of the
acquisition process. The transaction makes Hindalco the world's largest aluminum rolling
company and one of the biggest producers of primary aluminum in Asia, as well as being
India's leading copper producer.

Sales and NP for year ended 07 – 08 were 19201Cr & 2860.9Cr. Sales and NP for latest
Quarter 5010.2Cr & 1077 Cr.

On YOY basis NP has increased by 13% & based on quarter latest its increased by 49%

The stock has come down sharply on account of below expectation results… from over
200 levels to around 140. one can buy at current levels for a gain of 30 – 40 % upside in 4
– 5 months.