Shares Hindalco Industries fell over 14% to the intraday low of Rs 497.50 after hitting the lower circuit of 10% at Rs 524.20. The fall in the stock could be attributed to the drop in net revenue of Novelis.
The company’s largest subsidiary Novelis reported its third-quarter earnings for the quarter ending December on February 12. The company reported a net income of $121 million during the quarter of the current financial year against the $12 million a year ago in the same period, a jump of over 10 times. However, the net revenue of the company slipped by 6% due to lower aluminum prices and flat volumes.
“After a good run in stock prices in tune with the broader market, Hindalco stock prices have been under severe pressure due to capex concerns and profit booking ahead of their Q3FY24 results. Technically, Hindalco faces strong resistance at 541 on the Daily charts. Investors should buy only if Daily close is above this resistance. Next support will be at 481,” said A R Ramachandran, Co-owner of Tips2trades.
Hindalco’s stock has fallen over 15% in the last five days and 13% in the last month, but has risen nearly 11% in the last six months. In the long term, the company’s share has risen 17.5% in the last one year and almost 170% in the past five years.
To compare, the sectoral-index Nifty Metal fell nearly 7% in the last five days and almost 3% in the last 30 days, but, has risen around 15% in the last six months, similarly. The index has risen 35% in the past one year and 180% in the last five years.