⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HINDALCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | HINDALCO | Market Cap | 2,09,824 Cr. | Current Price | 934 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 24.1 | Book Value | 326 ₹ | Dividend Yield | 0.54 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 924 ₹ | DMA 200 | 822 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.94 % | PAT Qtr | 3,017 Cr. | PAT Prev Qtr | 2,266 Cr. |
| RSI | 49.3 | MACD | 1.30 | Volume | 40,66,294 | Avg Vol 1Wk | 73,11,406 |
| Low price | 546 ₹ | High price | 1,030 ₹ | PEG Ratio | 10.0 | Debt to equity | 0.18 |
| 52w Index | 80.1 % | Qtr Profit Var | 106 % | EPS | 38.7 ₹ | Industry PE | 17.0 |
📊 Core Financials
- Quarterly PAT rose from ₹2,266 Cr. to ₹3,017 Cr. (~33% sequential growth, ~106% YoY growth).
- ROE: 8.98% → moderate profitability.
- ROCE: 12.9% → average capital efficiency compared to peers.
- Debt-to-equity: 0.18 → low leverage, financially stable.
- Dividend Yield: 0.54% → modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 24.1 vs Industry PE 17.0 → trading at a premium.
- P/B Ratio: 2.87 (Current Price ₹934 / Book Value ₹326) → fair valuation for metals sector.
- PEG Ratio: 10.0 → valuation stretched relative to earnings growth.
- Intrinsic Value: Current price slightly above fair value, limited near-term upside.
🏢 Business Model & Competitive Advantage
- Hindalco is a leading aluminum and copper producer with global operations.
- Business model relies on metals production, downstream products, and Novelis subsidiary in rolled aluminum.
- Competitive advantage: Scale, integration across value chain, and global presence.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹900–₹920 (close to support levels, RSI at 49.3 indicates neutral momentum).
- Long-Term Holding: Suitable for investors seeking exposure to metals and infrastructure growth, though valuations are slightly stretched.
✅ Positive
- Quarterly PAT growth of ~106% YoY shows strong operational recovery.
- Low debt-to-equity ratio (0.18) ensures financial stability.
- FII holdings increased slightly (+0.03%), showing marginal foreign investor confidence.
⚠️ Limitation
- ROE (8.98%) and ROCE (12.9%) are moderate compared to industry leaders.
- PEG ratio (10.0) indicates valuation stretched relative to growth.
- DII holdings decreased (-0.94%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading below 52-week high of ₹1,030, showing resistance at upper levels.
- High PEG ratio suggests limited earnings-driven upside.
📈 Company Positive News
- Quarterly PAT surged to ₹3,017 Cr. from ₹2,266 Cr.
- MACD at 1.30 indicates mild positive momentum.
🌐 Industry
- Metals industry PE at 17.0, lower than Hindalco’s 24.1, showing sector-wide undervaluation compared to Hindalco.
- Industry growth driven by infrastructure demand, renewable energy, and global aluminum consumption.
🔎 Conclusion
- Hindalco is fundamentally strong with improving earnings and low debt.
- Valuations are slightly stretched, but long-term prospects remain positive due to global metals demand.
- Best strategy: Accumulate near ₹900–₹920 and hold long-term to benefit from infrastructure and aluminum sector growth.