HINDALCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | HINDALCO | Market Cap | 2,33,262 Cr. | Current Price | 1,038 ₹ | High / Low | 1,080 ₹ |
| Stock P/E | 26.8 | Book Value | 326 ₹ | Dividend Yield | 0.48 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 969 ₹ | DMA 200 | 859 ₹ |
| Chg in FII Hold | 1.80 % | Chg in DII Hold | -1.82 % | PAT Qtr | 3,017 Cr. | PAT Prev Qtr | 2,266 Cr. |
| RSI | 60.0 | MACD | 34.7 | Volume | 45,07,546 | Avg Vol 1Wk | 52,03,007 |
| Low price | 602 ₹ | High price | 1,080 ₹ | PEG Ratio | 11.1 | Debt to equity | 0.18 |
| 52w Index | 91.2 % | Qtr Profit Var | 106 % | EPS | 38.7 ₹ | Industry PE | 20.1 |
Positive
- Large market cap of ₹2,33,262 Cr. ensures scale and stability.
- EPS of ₹38.7 supports profitability.
- ROCE (12.9%) indicates moderate efficiency.
- Debt-to-equity ratio of 0.18 reflects a healthy balance sheet.
- Quarterly PAT growth of 106% shows strong earnings momentum.
- FII holdings increased (+1.80%), signaling foreign investor confidence.
Limitation
- ROE at 8.98% is modest compared to peers.
- PEG ratio of 11.1 suggests significant overvaluation relative to growth.
- Dividend yield of 0.48% is low, limiting income appeal.
- Current price (₹1,038) near 52-week high (₹1,080), reducing upside potential.
- P/E ratio of 26.8 above industry average (20.1), indicating stretched valuation.
Company Negative News
- Decline in DII holdings (-1.82%) shows reduced domestic institutional confidence.
- Valuation concerns with P/E above industry average.
Company Positive News
- Quarterly PAT surged to ₹3,017 Cr. from ₹2,266 Cr.
- FII stake increased, reflecting foreign investor support.
- Strong momentum with RSI at 60 and MACD positive (34.7).
Industry
- Metals and mining sector trading at industry P/E of 20.1, lower than Hindalco’s premium valuation.
- Sector demand driven by aluminum and copper consumption in infrastructure and automotive.
- Hindalco’s competitive advantage lies in integrated operations and global presence through Novelis.
Conclusion
Hindalco shows strong earnings momentum and scale, but valuations are stretched with modest ROE and low dividend yield. Technicals remain supportive near 52-week highs.
Entry Zone: Safer accumulation range between ₹1,010–₹1,030.
Long-Term Guidance: Suitable for investors seeking exposure to metals with global diversification. Expect moderate returns with potential upside if earnings growth sustains and valuations normalize.
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