HINDALCO INDUSTRIES LTD - SEPTEMBER QUARTER FY17 HINDALCO Industries Ltd reported stellar YOY performance with PAT & EBDITA galloping at 256% & 39% respectively in the current September quarter on the back of benign input costs & higher volumes leading to high operational performance and profitability for the company.  Net Profit or PAT for the September quarter stood at Rs.4397 Mn compared to Rs. 1235 Mn same period previous year. EBDITA was reported at Rs. 14928 Mn in Q2 FY17 against Rs. 10743 Mn corresponding quarter previous year. Revenue or Income from operations was almost stagnant YOY but jumped in double digits sequentially by 17%. Revenue was reported at Rs. 95619 Mn compared to Rs. 81593 Mn in the previous June quarter. Profit Before tax at Rs. 6318 Mn jumped 4 times on yearly basis and grew 53% sequentially as exceptional gain of Rs. 849 Mn was reported in the current September quarter. Other Income declined 27% yearly whereas on sequential basis there was a jump of 49%. Other Income was reported at Rs. 3364 Mn in the current Q2 FY17. Higher volumes, rationalized cost structure due to soft input costs YOY, enhanced coal security at a time when international coal prices are roaring high, and captive reserves led to both EBDITA & Net Profit Margins improving phenomenally by 437 bp & 331 bp respectively in the  current September quarter. Hindalco Industries Ltd receives 52% of its revenue from Aluminium segment which grew 10% YOY. Copper segment contributing 48% of the revenues exhibited de-growth of 9%. The company is also focused on deleveraging itself and interest costs have been declining over the previous two quarters. Hindalco with market cap of Rs. 329597.74 Mn is the industry leader in the Indian Aluminium industry and is poised for higher growth with strong demand from power, transportation, housing & packaging sectors. In addition to that industries such as solar power, aerospace, defence, railways, metro & smart city projects offer long term growth opportunities to Indian Aluminium industry. We recommend BUY for the stock for medium & long term investment with PE multiple of 22.34 x FY17E & 20.86 x FY18E with a target price of Rs. 220. Disclaimer                                                                               The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. 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