Hindalco reports 100% Jump In Consolidated Net Profit, 400% Dividend Declared: Right Time To Buy The Stock?

Aluminium and copper manufacturing company Hindalco Industries Limited has announced a 100 percent surge in its consolidated net profit at Rs 3.850 crore in the 4th quarter ended March 2022 as against Rs 1928 crore announced in the last financial year. The subsidiary of Aditya Birla Group has registered a profit surge of 4.8% from Rs 3.675 crore earned for the October-December tenure.

It is worth noting that the consolidated net revenue of Hindalco reported at Rs 55,764 crore as compared to the revenue reported in the last financial year, a rise of more nearly 38%. There is a rise of 11% in the net revenue from the net revenue of Rs 50,272 crore registered in the previous quarter. The consolidated net profit of Hindalco has registered a growth of nearly 300% to Rs 13,730 crore from Rs 3,483 crore recorded in the financial year 2021.

1. Dividend

When it comes to dividend, the board of Hindalco has recommended a dividend of 400% or Rs 4/share for current financial year as against 300% or Rs 3/share in the last financial year. Hindalco Industries Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 26, 2022, inter alia, has recommended dividend @ Rs. 4 per equity share i.e 400% of face value of Re. 1/- each for the year ended March 31, 2022, subject to approval of shareholders at the ensuing Annual General Meeting of the Company. Meanwhile, Hindalco Industries has reported a very positive financial performance in March 2022. Hindalco shares zoomed today when the markets closed for the day. Shares of the company gained more than 2.75% at 407.75 at BSE while at the NSE shares price was recorded at 407.80 with a gain of 2.76%.

2. Should you buy shares of Hindalco?

Hindalco witnessed a difficult period in the last 45 days. It remained as one of the bad performing stocks and correcting over 20%, as reported by Moneycontrol.com. However, the corrections appear to have been arrested. The shares have hit a 52-week high of Rs 636 and 52-week low of 359.80. The shares have hit an upper price band of 448.50 and lower price band of 367. Hindalco has performed better than its peers. You may consider purchasing the stock as it is surging in the upward direction both at BSE and NSE. A buy call has already been given by ICICI Direct for Hindalco Shares a week ago. Motilal Oswal's research report has also given a buy call for Hindalco shares with a target of Rs 680.

3. About Hindalco Industries Limited

Hindalco Industries Limited is a leading Indian aluminium and copper manufacturing company. It is a subsidiary of the Aditya Birla Group. Hindalco is headquartered in Mumbai, Maharashtra, India. A US$18 billion metals powerhouse, Hindalco is an industry leader in aluminium and copper. Hindalco's acquisition of Aleris Corporation in April 2020, through its subsidiary Novelis Inc., has cemented the company's position as the world's largest flat-rolled products player and recycler of aluminium.