Stocks to Buy: Hindalco, Coal India, APL Apollo among top 4 Axis Securities picks in the metals and mining space

Stocks to Buy: Hindalco Industries, Coal India share prices along with APL Apollo and JTL Industries are the top 4 Axis Securities pick in the metals and mining space

Top 4 Buy Ideas in Metal and Mining space

For Hindalco Industries Axis Securities says that the Aluminium prices are recovering with cost support from higher Alumina prices which is positive for Near to medium term outlook . Higher Aluminium prices on London Metal Exchange and lower coal costs augurs well for Hindalco . In addition the downstream Capex benefit will be back ended and Free Cash flow is expected to increase post the completion of expansion projects augurs well in the long term

Hindalco trades at 6.4x 12 months forward Enterprise Value (EV) by Earnings before interest tax depreciation and amortisation (EBITDA) which is not cheap against Long term average of 6.3 times

Axis Securities has a Buy rating as major downstream expansion Capex is almost complete.

Coal India near to mid term outlook Axis Securities volume expansion to offset the fall in e-auction premiums . Higher production volume targets bode well for the long term outlook coupled with good dividend yield. Coal India trades at 12 months forward EV by Ebitda of 6.25 times against Long term average of 5.4 times which looks slightly stretched

Axis Securities has a BUY rating on strong coal production ramp up potential

APL Apollo tubes Demand remains sluggish during monsoon, however demand will pick up in H2FY25. The Raipur plant ramp up will drive higher Ebitda per tonne. Long term target of 10mtpa tube capacity is positive

Axis Securities has a a Buy rating on APL Apollo tubes share prices on account of capacity ramp up ahead.

For JTL Industries share prices the demand remains sluggish during monsoon, demand to pick up in H2FY25. However the long term target is to increase capacity to 2mtpa. Mid term target is to achieve capacity of 1mtpa by FY25

Axis Securities have a Buy rating on JTL Industries share prices account of capacity ramp up ahead.

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