April 5, 2018 / 4:45 AM / 19 days ago

BUZZ-India's Hindalco gains most in 2-1/2 months; risk reward favourable - analysts

** Hindalco Industries Ltd rises as much as 4.9 pct at 209 rupees; top pct gainer in NSE index

** Stock on track to snap 4 sessions of losses; posts biggest intraday gain since Jan 23

** Stock has undergone correction on concerns about Novelis unit’s margins post U.S. trade restrictions, weak aluminium prices and risk-off on trade tensions - Macquarie Research

** Macquarie cuts price target to 296 rupees from 328 rupees; keeps “outperform” rating

** Revised price target suggests 40 pct potential upside, offering most attractive risk reward in its coverage - Macquarie

** Risk-reward is positive as aluminium prices are likely near a floor as low margins/losses at Chinese smelters should re-balance supply, Novelis should be unaffected by U.S. tariffs, and strong free cash flow offers option to pursue growth opportunities - Jefferies says in a note

** 25 of 29 analysts covering the stock have a “buy” or higher rating, 3 “hold” while 1 rates it at “strong sell”; median PT is 309.50 rupees - Thomson Reuters Eikon data

** Stock has fallen 26.6 pct this year up to Wednesday vs 12 pct decline in Nifty metal index

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