Kotak has added Hindalco Industries to its large-cap portfolio after the stock corrected 18 percent over the past month, noting that the global aluminium industry is expected to maintain a tight supply-demand balance over the next two to three years.

Hindalco, along with Vedanta, has been a dominant player in India's aluminium market, accounting for nearly 90% of domestic production, and is also expanding its production capacity in response to rising domestic demand.

Hindalco Industries is expected to benefit from earnings stabilization at its US subsidiary Novelis and ongoing expansion efforts, with analysts recommending it as a buy-on-dip. The company is projected to see a growth of around 20% over the next 9-12 months, supported by a global aluminium supply deficit and a strong downstream business.