The Hindalco US Subsidiary company Novelis largest Aluminium Recycler for Coca- Cola, Ford and Land Rover cars postpone its IPO process in the US. The IPO valuation is $810-945 Million and Proposed valuation is $12.6 Billion Worth in this company, So sale of 4.5 Cr shares in the IPO is decided before. Now it is postponed to future due to No proper reason from the company reported.
HINDALCO INDS Market price is moving in Ascending channel and market has rebounded from the higher low area of the channel
Shares of Hindalco Limited fell over 6 percent to Rs 607, extending losses for the second consecutive trading session after its US subsidiary, Novelis Inc, decided to postpone its initial public offering (IPO). The company stated that Novelis will reassess the timing of the public offer in the future.
Last week, Novelis had set the price band for its IPO between $18 to $21 per share and planned to offer 45 million (4.5 crore) shares. Hindalco was to be the sole selling shareholder, aiming to raise between $810 million and $945 million. At the upper end of the price band, Novelis targeted a valuation of up to $12.6 billion in its US IPO.
Novelis is the world’s largest aluminum recycler, with major clients such as Coca-Cola, Ford, and Jaguar Land Rover.
Following the announcement, CLSA reiterated a ‘Buy’ rating on Hindalco, setting a target price of Rs 770 per share. Discussions around the deal are expected to focus on the valuation of Hindalco’s stake in Novelis and the use of the IPO proceeds.
Analysts at Prabhudas Lilladher also maintained a ‘Buy’ rating on Hindalco, applying a 6.5x EV multiple to Novelis and a 5x multiple to its India business, citing improved performance and expected gains in the India business due to higher LME prices.
BEL: CLSA Downgrades BEL Due to High Valuations, Keeps ‘Outperform’ on HAL
After NDA Party losed its Majority on the last day Election 2024, Defense stocks margin of CAGR 9% is maintained in the next five years, Now NDA party has its alliance Government Formation makes Independent decision is taken in the Defence sector, So mostly dependent on alliance in each action. So Defence department will take back step from current stance.
BEL Market price has broken Ascending channel in upside
Following a shift in market sentiment towards defense firms post the election results, where the NDA government’s victory fell below expectations, foreign brokerage CLSA expressed concerns about the valuations of defense stocks, leaving minimal margin for execution errors.
CLSA downgraded Bharat Electronics to ‘outperform’ from ‘buy’, although it raised its target price to Rs 294 from Rs 207, indicating a potential upside of 15%.
Conversely, the brokerage maintained its ‘outperform’ rating on Hindustan Aeronautics Limited (HAL), setting a target price of approximately Rs 4,731 per share.
Defense stocks had experienced significant growth during the Modi government’s second term, driven by initiatives promoting indigenous defense manufacturing under the Atmanirbhar Bharat theme.
However, with the BJP needing to rely on its allies for government formation, experts anticipate a potential shift in the government’s policy stance from growth-centric initiatives to favoring consumption and welfare-based programs.
This shift could lead to slower growth for stocks benefiting from government policies such as PSUs, capital goods, railways, or defense.
CLSA, however, believes that the government will continue to prioritize defense indigenization efforts. The government’s commitment to this agenda has resulted in a 9% Compound Annual Growth Rate (CAGR) in defense spending from FY16 to FY24, a trend expected to persist.
NIFTY 50 : Bears Sweep Market as India VIX Surges 39% | Investors Lose Rs 30 Lakh Cr
The Election result fears in the India Stock market last day eroded Rs.30 Lakh cr from the investors pocket. Sensex index down 4389 points, Nifty Down to 1379 points yesterday due to Ruling party NDA did not get majority stake like before elections. Alliance formed NDA Government will get stuck in each decision like before 10 years formation. So Indian market less cheers mostly like Adani and Ambani stocks in the India.
Nifty 50 Index Market price is moving in Ascending channel and market has reached higher low area of the channel
The market experienced its most significant decline in four years, with investors witnessing a staggering erosion of wealth amounting to Rs 30 lakh crore. The Nifty concluded the day’s trading session at 21,884.50, marking a decline of 1,379 points from its previous close. It had reached a low of 21,281 points during the day. Similarly, the Sensex plummeted by 4,389 points to settle at 72,079.05.
Mid and small-cap stocks suffered even greater losses, with their respective indices dropping by 6-7%. The prevailing concern in the market is the potential slowdown in policy decisions, particularly since the BJP may not secure a majority on its own.
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