BUZZ-Street View: Brokerages cautious on India's Hindalco as Novelis worries persist

** Hindalco Industries HALC.NS posts a surprise profit drop for the second straight quarter last week, missing analysts' estimates

** Shares of the aluminium products maker fell 2.2% to 1,085 rupees on Monday

NOVELIS CONCERNS OFFSET DOMESTIC DEMAND OPTIMISM

** Jefferies ("hold," PT: 1,075 rupees) says it remains concerned about multiple fire incidents clouding Novelis' operational outlook and finds risk/reward in HALC unfavorable at current elevated aluminum prices

** Systematix Institutional Equities ("hold," PT: 1,111 rupees) says Novelis continues to operate at a significantly weaker unadjusted EBITDA margin, with limited near-term visibility on normalized profitability

** BOB Capital Markets ("hold", PT: 1,134 rupees) says outlook is positive, supported by improved domestic demand and incremental volumes from expansion projects over FY27-29

** Citi Research ("neutral," PT: 1,175 rupees) says it maintains "neutral" as the upside in London Metal Exchange aluminium prices from current spot levels may not be significant


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