Hold Hindalco advises Eastern Financiers

Agarwal told CNBC-TV18, "I don’t think there would be any increase in the market cap of Hindalco for a fairly long period of time unless the market supports for various other reasons. Because if one looks at the numbers - the December quarter profit fell by around 4 percent due to higher finance cost. They have shut down their Australia operations because operations have become unviable due to higher cost.”

“They are expanding its capacity almost three fold in the next three-four years. But the environment remains very vulnerable because of sticky cost and delay in commencement of mining of captive blocks. Even the Mahan venture is not doing well. So, there are hiccups in the near future and maybe in the next six to nine months I don’t think the stock is going anywhere from these levels. Maybe a range of Rs 98 to Rs 108 is quite possible. Since it is trading at a lower band of the range I would suggest hold on to this stock and try to get out at around Rs 107-Rs 108,” Agarwal added.