Hindalco Industries rallies about 4.2% with optimistic demand from China

China plans to pump in $75 billion for infrastructure building      

Hindalco Industries Ltd, one of the leading producers of aluminium and copper in the world, has been trending on Dalal Street as it has rallied by about 4.2% from its previous close of Rs 340.75. The scrip opened at Rs 340.25 and made a day’s high of Rs 356.90(+4.74%). At 12:55 pm on 5 July, the stock was trading at Rs 355.60 on the BSE.

The upside was witnessed on the back of optimistic demand from the Chinese economy. The Chinese economy had been affected by the Omicron variant of the covid-19 and also the controversial ‘zero covid’ policy which had led to lockdowns and industry shut downs. However, the government has recently announced measures to boost the economy and the infrastructure space is in the focus. The government is planning to inject $75 billion in the sector as a means to stimulate economic activity. This can lead to rise in commodity prices at some extent and also improve global demand scenario. Global players like Hindalco, Vedanta, Tata Steel and other metal stocks are up today.

Talking about its recent quarterly results, In Q4FY22, revenue grew by 37.67 per cent YoY to Rs 55764 crore from Rs 40507 crore in Q4FY21. On a sequential basis, the top-line was up by 10.92 per cent. PBIDT (Ex OI) was reported at Rs 7304 crore, up by 29.16 per cent as compared to the year-ago period and the corresponding margin was reported at 13.1 per cent, contracting by 86 basis points YoY. PAT was reported at Rs 3859 crore, up by 98.41 per cent from Rs 1945 crore in the same quarter for the previous fiscal year. The PAT margin stood at 6.92 per cent in Q4FY22 expanding from 4.8 per cent in Q4FY21.

Hindalco Industries Limited was incorporated in India in the year 1958 and is a flagship company of the Aditya Birla Group, is the industry leader in aluminium and copper. Hindalco has two main streams of business Aluminium and Copper. In Aluminium, the company caters to the entire value chain starting from mining of bauxite and coal through production of value added products for various applications. The company also has one of the largest single location Copper smelting facility in India.

The stock has a 52-week high of Rs 636.00 and a 52-week low of Rs 309.00.