Hindalco hit by "Ball"
Ball Corporation, one of the largest beverage can makers in the US and the largest customer of Novelis Corporation, subsidiary of Hindalco, slashed its own growth outlook; a double whammy as aluminium prices on one hand are down while cost of production have scaled up due to historic inflation.
Ball Corp lowered its five-year volume growth outlook by 1-2%, citing historic inflation and said that near-term volumes could be even lower given macro pressures. It has lowered its second half outlook for 2022.
This will directly impact the performance of Novelis which in turn will affect Hindalco.
These concerns have kept the stock price in the red, opening 1.5% lower at Rs.390 and going down by over 6.5% to hit an intraday low at Rs.369.65. Its 52-week low is at Rs.309.