This stock gave 115% multibagger return in 2021, brokerage firm also advised to buy

Multibagger stock: Domestic brokerage and research firm ICICI Securities believes that strong aluminum prices and good performance of Novelis augurs well for Hindalco. Hindalco is the world’s largest aluminum company by revenue, and a big name in copper as well. Its wholly owned subsidiary Novelis is the world’s largest producer of aluminum beverage can stocks.

Hindalco’s share price has risen nearly 3.5 times in the last five years (from around ₹155 in October 2016 to around ₹543 in October 2021). It has given a multibagger return of around 115% so far this year.

ICICI Securities is further bullish on the stock and has a ‘Buy’ rating on Hindalco shares with a target price of ₹650 for a target period of around 12 months.

Global aluminum prices on LME witnessed a sharp jump during the current calendar year. Aluminum prices on LME have increased from US$2028/tonne in January 4, 2021 to US$3149/tonne on October 15, 2021, showing a growth of 55% over the period. The hike in aluminum prices augurs well for an integrated company like Hindalco (Domestic Operations).

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