Shares of Hindalco surged over 2% on November 12 as the company's second-quarter (Q2FY25) earnings exceeded estimates, a factor that has captured the attention of those who invest in stocks.
The metals and mining company reported a substantial increase in net profit, reaching ₹3,909 crore for the quarter, compared to ₹3,298 crore in the same period the previous year. Revenue from operations also saw an increase of 7%, rising to ₹58,203 crore from ₹54,169 crore in the year-ago quarter.
Investment plans to drive growth in upstream business
Hindalco has outlined an ambitious plan to invest between $4-5 billion over the next three years to support growth in its upstream business. This commitment may interest those who invest in stocks, as it indicates Hindalco's intention to strengthen its production capacity and market position in metals. Over the past 12 months, Hindalco's stock has climbed 35%, outperforming the Nifty index, which rose by 23% in the same period. This strong performance could position Hindalco as a promising option for individuals looking to invest in stocks in the metals sector.
Hindalco's EBITDA performance and market resilience
Hindalco reported an EBITDA of ₹4,300 crore for the quarter, surpassing previous expectations by approximately 35%. This improvement in EBITDA, even amid a $140 per tonne drop in the London Metal Exchange (LME) aluminium prices, highlights the company's operational resilience. Hindalco's aluminium EBITDA per tonne rose by $96 from the previous quarter, which could be seen as a favourable indicator for those looking to invest in stocks in the metals and mining industry.
Stock performance compared to the market
At 10:40 AM on November 12, Hindalco shares were trading around 1% higher at ₹660.75 on the National Stock Exchange (NSE). The stock has rallied approximately 8% so far this year, which falls slightly behind the Nifty index's 10% gain. However, over the past year, Hindalco has risen by about 35%, compared to a 23% increase in the Nifty index. This trend may catch the attention of individuals who invest in stocks, as it suggests a steady growth pattern for Hindalco.
Hindalco's recent progress amid sector challenges
Over the past year, Hindalco's stock has shown a steady upward trend, making it a stock to watch for those who invest in stocks focused on metal and mining. Although the company has encountered market volatility, its sustained focus on operational efficiency and growth in key markets like beverage cans has helped to maintain its position in the sector.
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