Stock Tips: Due to the possibility of reduction in demand at the global level, there was a sharp fall in the price of aluminum, but now there is a possibility of a rise in it again.
Hindalco Outlook: There was a sharp fall in the price of aluminum due to the possibility of reduction in global demand, but now there is a possibility of a rise in it again. Its impact can be seen on the shares of Aditya Birla Group’s giant aluminum company Hindalco. A trading day ago (20 June 2022), its prices were at a record low of 52 weeks, but now according to brokerage firm JM Financial, investing in it can earn a great profit of 55 percent. Right now its shares are up by more than 3 percent at a price of Rs 331.45 and the brokerage firm has set a target price of Rs 515 per share for investing in it.
That’s why by rating Hindalco
The spot price of aluminum fell from $ 3800 thousand (Rs 2.97 lakh) per tonne to $ 2500 thousand (Rs 1.95 lakh) per tonne due to the forecast of fall in global demand. Apart from this, the increase in the output of aluminum from China also increased the pressure on its prices on LME (London Metal Exchange). However, companies around the world believe that despite the improvement in supply from China, the supply of aluminum will not be sufficient and LME inventory may remain at a many-year low of about 408 thousand tonnes. Due to this, there is a possibility of a rise in the prices of aluminum. Due to this, market experts are seeing a golden opportunity to invest in Hindalco. JM Financial has given it a buy rating and has a target of Rs 515 per share.
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Prices are on 48% discount
Hindalco shares were at a record 52-week price of Rs 636 on March 29, 2022. After this, there was selling pressure, due to which its prices slipped to Rs 331.45 on BSE today i.e. at a discount of about 48 percent. A trading day earlier on June 20, it was at a price of Rs 309, which is a record low of 52 weeks. From this level, now the market experts are expressing the possibility of recovery in it and investors can earn great profits by investing money.
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