HINDALCO INDUSTRIES LTD (Standalone)- Q3 FY17 HINDALCO Industries Ltd reported another stellar performance with revenue growing at 14% & EBDITA jumping 64% YOY in the current December quarter. Profit After Tax was reported at Rs. 3205 Mn in current Q3 FY17 against Net Loss of Rs. 328 Mn same period previous year. Revenue or Income from Operations stood at Rs. 99148 Mn in the current quarter against Rs.87159 Mn in Q3 FY16. Revenue also witnessed stable 4% sequential growth in the current December quarter driven by increase in average realization for both Aluminium and Copper, along with weaker rupee and higher aluminium volumes. Aluminium & Copper revenues grew by 9% & 19% respectively in the current Q3 FY17. EBDITA was reported at Rs. 14052 Mn in Q3 FY17 against Rs. 8589 Mn corresponding quarter previous year. Other Income increased 20% yearly whereas on sequential basis there was a decline of 35%. Other Income was reported at Rs. 2200 Mn in the current Q3 FY17. Higher volumes, higher LME, rationalized cost structure due to benign input costs YOY, enhanced coal security and captive reserves led to EBDITA improving phenomenally by 432 bp at 14.17% in the current December quarter. Net Profit Margin was reported at 3.23% in Q3 FY17. Hindalco Industries Ltd receives 50% of its revenue from Aluminium segment which grew 9% YOY. Copper segment also contributed the same growing 19% YOY on account of higher copper realization but was partially negated by lower byproduct prices of Sulfuric acid and di ammonium phosphate. The company continues to focus on deleveraging itself and has made pre-payment of Rs. 34200 Mn in January 2017 against the outstanding project term loans. Hindalco with market cap of Rs. 389211 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.  The company is focused on 3Cs, customer centricity, cost control and cash conservation which will lead to long term stability & profitability. We recommend BUY for the stock for medium & long term investment with PE multiple of 26.97 x FY17E & 24.15 x FY18E with a target price of Rs. 285. 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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