Hindalco shares slip as continued weakness in US subsidiary to weigh on earnings

Shares of Hindalco Industries, the Indian multinational aluminium and copper producer, experienced their sharpest drop in almost two months due to weak performance in its US subsidiary, Novelis. This is expected to impact its consolidated earnings by the 2023-24 financial year. Despite analysts reducing earnings estimates by 3-5% to account for the headwinds, the shares have been hailed as a good long-term investment due to its strong position in the automotive and beverage can markets, and majority of operating profit not being linked to LME prices.