Buy Call by Emkay Global Financial Services
Emkay Global Financial Services recommended a buy call on Hindalco Industries with a target price of Rs 244. The US DoJ(Department of Justice) emphasized in its press release that the proposed acquisition will reduce the number of auto body sheet producers from four to two. Novelis will lock down 60% of the existing domestic auto body sheet capacity and the huge majority of the expansion due to the proposed acquisition.
On the other hand, both DoJ and Novelis have agreed to refer the matter to binding arbitration. The brokerage feels if the acquisition blocked then it would impact Hindalco.
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