Hindalco Shares Tumble Over 14% After U.S. Unit Raises Project Cost Guidance
Novelis, the U.S. unity, has raised the capital cost to $4.1 billion to build the fully integrated aluminium rolling and recycling plant in the U.S.
Shares of Hindalco Industries Ltd. slumped over 14% to their lowest level in two months on Tuesday after its U.S. unit raised capital costs on its Bay Minette project while delaying its expected commission by a year.
Novelis, the U.S. unity, has raised the capital cost to $4.1 billion to build the fully integrated aluminium rolling and recycling plant in the U.S., according to an exchange filing. This is higher than the earlier estimate of $2.5 billion.
The plant is expected to be commissioned in the second half of the calendar year 2026, Hindalco Industries said in an exchange filing.
Shares of Hindalco Industries slumped 14.58% to Rs 497.50 apiece, the lowest level since Nov. 20. It was trading 14.07% lower at Rs 500.50 apiece as of 10:01 a.m. This compares to a 0.29% advance in the NSE Nifty 50 Index.
It has risen 17.35% in 12 months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 29.87, which implied the stock is slightly oversold.
Out of 25 analysts tracking the company, 22 maintain a 'buy' rating, one recommends a 'hold', and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.4%.
