Hindalco Industries share price, which has been declining since Monday, faced heavy selling pressure on Thursday, plunging over 7 per cent in early trading on the BSE. The Birla Group stock opened at ₹716.95 against its previous close of ₹717.45 and fell as much as 7.1 per cent to the level of ₹666.80. The stock, however, pared losses. Around 10:05 am, it traded 4.5 per cent down at ₹685.30. Equity benchmark Sensex was down 0.05 per cent at 80,043 at that time.
Experts attributed the fresh fall in the stock to Constellium’s earnings report. Constellium is a global major in the manufacturing and recycling of aluminium products. Shares of Constellium crashed 28 per cent overnight after it reported the results.
Media reports suggested that the Paris-based company reported below-expected third-quarter profit and revenue due to weakening demand and the impact of flooding on its Swiss facilities.
Experts pointed out that Constellium’s earnings report acts as a benchmark for assessing industry health. The company’s weak earnings have led to investors’ cautious approach toward Hindalco.
Hindalco will report its September quarter earnings on November 11.
Hindalco Q2 result expectations
Experts expect the company to report a mixed set of numbers for the September quarter.
Antique Stock Broking expects Hindalco to report a profit of ₹1,290 crore, sharply higher by 59 per cent year-on-year (YoY) but lower by 12 per cent quarter-on-quarter (QoQ).
“Standalone revenue is forecasted to remain largely flat YoY but decline 8.1 per cent QoQ impacted by sequentially lower aluminium and copper prices. EBITDA would improve 39.1 per cent YoY to ₹2,450 crore aided by lower input commodity costs and improved operations,” Antique said.
Brokerage firm Motilal Oswal Financial Services expects a 5.1 per cent YoY rise in net sales and a 45.4 per cent YoY jump in adjusted PAT. On a QoQ basis, however, PAT may decline 7.6 per cent, and sales may slip 0.10 per cent.
The brokerage firm expects Hindalco to report a 16.7 per cent YoY growth but a 12.7 per cent QoQ decline in EBITDA.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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First Published:
24 Oct 2024, 10:32 AM IST
Business NewsMarketsStock MarketsHindalco Industries share price plunges 7% following Constellium’s earnings report
