HINDALCO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🏭 Investment Analysis: HINDALCO Industries Ltd.

Investment Rating: 4.2

🔍 Fundamental Strengths

ROE of 14.5% and ROCE of 15.2% point to solid profitability, especially for a capital-intensive metals company.

PEG Ratio of 1.25 is slightly high but still suggests decent growth potential relative to earnings.

EPS of ₹71.2 combined with low P/E of 9.36 highlights valuation attractiveness.

Debt-to-equity of 0.52 is manageable in the context of its sector.

Quarterly Profit Surge (66.3%) indicates strong operational momentum and possible cyclical upside.

📉 Valuation & Price Trend Analysis

Trading above both 50-DMA and 200-DMA, suggesting bullish medium-term momentum.

MACD (6.64) and RSI at 60 lean bullish but still have room before entering overbought territory.

P/E well below industry average (9.36 vs. 17.7) supports undervaluation thesis.

Volume slightly below 1-week average, indicating consolidation.

🎯 Ideal Entry Price Zone: ₹640 – ₹680 This range is near both DMAs and offers a cushion from recent lows while maintaining favorable valuation metrics.

🧭 Holding / Exit Strategy (If Already Holding)

If your entry is near or below ₹650, consider holding for a 3–5 year horizon.

The stock appears primed for growth with cyclical tailwinds and recovering profitability.

Exit Strategy

Monitor PEG; reassess if it rises above 1.7 without ROE/ROCE improvement.

Consider partial booking near ₹750–₹770 resistance zone, especially if earnings momentum slows.

Retain core holdings if dividend payout improves and metal demand outlook remains strong.

Would you like a breakdown comparing HINDALCO to other metal sector players like Tata Steel or Vedanta? Could help clarify its long-term edge.

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