Hindalco Price has been dropped by 15%

Hindalco share price has been fall in by 14% today post its us subsidiary Novelis declared its third-quarter performance.

Novelis has revised the capex outlet for their growth momentum project like Green Field expansion in North America by 65% and delayed by 1 year which is expected in the financial year 2027.

"The company has revised the capex outlet upward for its key growth project Green Field extension in North America by 65% to $4.1 billion and delayed the timeline by 1 year to end financial year 2027, Estimated Cost inflation and delay do not impact our explicit earning forecast until financial year 2026 but damage the growth earnings and return prospect of the company from a 5 year." Kotak institutional equity analyst stated.

Novelis sales have declined by 6% year on year for the third quarter of FY 2024 which is mainly driven by a lower aluminum price and shipment issues. Shipments were flat due to the decline in specialty product shipments from the untouched in economic conditions of the markets.