Why has the Hindalco stock corrected so sharply in the recent past?

The problems with Hindalco are not with the top line but with the top line. Of course, the situation is relatively better for large companies like Hindalco due to the strong global franchise that they possess in the form of the Novelis business in Canada. However, the stock of Hindalco hit a 9-month low at Rs 397 on during the week as the pressure from the operating profits more than offset the optimism over the growth in top line sales.

Just to cite an example, the EBITDA of Novelis was 15% lower at $431 million during the quarter midst a plethora of operational challenges. Novelis reported 34% growth in net sales in Q4FY22 to $4.8 billion on the back of higher average aluminium prices. Aluminium demand was quite robust in the beverage can segment and the aerospace industry, although the automotive demand was tepid. EBITDA to a hit yoy on account of a spike in raw material costs and other operational costs like power, coal, oil and freight.