Hindalco shines bright

Hindalco is very much on the buzz today, with the stock opening higher at Rs.138.40 and zooming up to an intra day high at Rs.143.45, a new 52-week high. It currently remains around the same high levels.

This big positive buzz around the stock is on grapevine murmurs that the promoters would be hiking their stake by another 5% in current fiscal of FY15.

In FY14, in Sept’13, the company, through its various holding companies, converted warrants into equity shares, taking promoter stake to 37% from 32.06%, entailing a total investment ofRs.2,165 crore.

Also, there is expectation that the company might achieve full output at its new factory in the central state of Madhya Pradesh by March 2015, adding  359,000 metric tons of metal-making capacity, taking Hindalco’s total capacity to more than 900,000 tons. Mahan Coal continues to remain a big hurdle and only when that gets cleared, with the big positive trigger for the stock truly come in for the long term.