>> Tuesday, December 16, 2008
Hindalco formarly known as
The stock has tumbled drastically, but considering for a long term view it is a good bet if available within 45-49 range.
It is the targets producer of primary aluminum in
In 2007, the acquisition of Novelis Inc. a world leader in aluminum rolling and can recycling marked a significant milestone in the history of the aluminum industry in
Business - Hindalco is top manufacturer of aluminum and copper in
Positive factors - When world aluminium leaders such as Alcoa of the
Alcoa had reported a 52 per cent fall in profit and Chalco as much as 92 per cent.
This is surprising when considered that in terms of capacity, Alcoa and Chalco are much bigger than their Indian counterparts, even after taking into account the expansion plans of the firms here.
Not only is our aluminium industry not contemplating production adjustment, a metaphor for capacity resting, none of the local producers is going to put on hold its capital expenditure plans. But Hindalco has not shed any of its plans yet. That’s a biggest positive factor.
Reasons for fall in hindalco stock price
* Decline in demand for aluminum and copper.
* Acquisition of Novelis adding on to debt burden of Hindalco
* Global industrial downturn leading to lack of new business demand.
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