Hindalco gains in value and volume

Hindalco Industries rose 0.55% to Rs 154.50 at 12:56 IST on BSE after aluminium futures surged to a record high on the London Metal Exchange on Thursday, 10 July 2008.

The stock hit a high of Rs 159.90 and a low of Rs 152.50 so far during the day. The stock had a 52-week high of Rs 223.30 on 15 November 2007and a 52-week low of Rs 132.50 on 1 July 2008.

The company has an equity capital of Rs 122.71 crore. Face value per share is Rs 1.

The current price of Rs 154.50 discounts its Q4 March 2008 annualised EPS of Rs 35.14, by a

PE multiple of 4.40.

The surge in aluminium futures came after reports that China's top 20 aluminium producers have decided to cut production by 5-10% from July 2008 to push up aluminium prices and reduce power consumption.

In June 2008, Hindalco Industries’ board approved raising up to Rs 5000 crore by way of a rights issue to redeem a bridge loan it had taken for acquisition of Novelis Inc.

In February 2007, the company entered into a definitive agreement to acquire Novelis in an all cash transaction for a consideration of $6 billion.

Hindalco Industries’ net profit rose 49.3% to Rs 1077 crore on 5.5% increase in net sales to Rs 5010.20 crore in Q4 March 2008 over Q4 March 2007.

The company is India's largest aluminium producer and is engaged in producing aluminium and semi- fabricated products.