HINDALCO - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.7
| Stock Code | HINDALCO | Market Cap | 2,26,622 Cr. | Current Price | 1,008 ₹ | High / Low | 1,179 ₹ |
| Stock P/E | 22.5 | Book Value | 341 ₹ | Dividend Yield | 0.50 % | ROCE | 17.1 % |
| ROE | 13.7 % | Face Value | 1.00 ₹ | DMA 50 | 1,040 ₹ | DMA 200 | 918 ₹ |
| Chg in FII Hold | 1.80 % | Chg in DII Hold | -1.82 % | PAT Qtr | 2,934 Cr. | PAT Prev Qtr | 3,017 Cr. |
| RSI | 40.0 | MACD | -15.5 | Volume | 64,21,237 | Avg Vol 1Wk | 95,93,702 |
| Low price | 635 ₹ | High price | 1,179 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.23 |
| 52w Index | 68.6 % | Qtr Profit Var | 88.0 % | EPS | 44.9 ₹ | Industry PE | 16.2 |
HINDALCO shows moderate potential for swing trading. The RSI at 40.0 indicates weak momentum, while MACD (-15.5) reflects bearish sentiment. The stock is trading below its 50 DMA (1,040 ₹) but above its 200 DMA (918 ₹), suggesting short-term weakness but medium-term support. Fundamentals like ROCE (17.1%) and ROE (13.7%) are decent, while valuation remains slightly stretched with a P/E of 22.5 compared to industry PE of 16.2.
💡 Optimal Entry Price: Around 980–1,000 ₹, closer to support levels near 950 ₹.
📈 Exit Strategy (if already holding): Consider booking profits near 1,060–1,080 ₹, or trail stop-loss if momentum strengthens toward 1,179 ₹ (recent high).
🌟 Positive
- Strong EPS of 44.9 ₹ supports valuation strength.
- PEG ratio of 0.50 indicates undervaluation relative to growth.
- Low Debt-to-Equity ratio (0.23) shows financial stability.
- FII holdings increased (+1.80%), reflecting foreign investor confidence.
- Stock trading above 200 DMA confirms medium-term bullish support.
⚠️ Limitation
- Stock trading below 50 DMA (1,040 ₹) shows short-term weakness.
- Negative MACD (-15.5) highlights bearish momentum.
- Quarterly PAT declined from 3,017 Cr. to 2,934 Cr.
- DII holdings decreased (-1.82%), showing reduced domestic support.
- Dividend yield of 0.50% is modest.
📰 Company Negative News
- Sequential decline in quarterly profit raises concerns about earnings stability.
- Reduced domestic institutional support with DII holdings down (-1.82%).
📈 Company Positive News
- FII holdings increased (+1.80%), showing foreign investor confidence.
- EPS of 44.9 ₹ highlights strong earnings power.
- PEG ratio of 0.50 suggests attractive valuation relative to growth.
🏭 Industry
- Metals and mining industry remains robust with global demand for aluminum and copper.
- Industry PE at 16.2 vs HINDALCO’s 22.5 shows slight overvaluation.
🔎 Conclusion
HINDALCO is fundamentally strong but technically weak in the short term. For swing trading, entry near 980–1,000 ₹ is favorable, with exit around 1,060–1,080 ₹. Traders should remain cautious due to short-term bearish indicators, while medium-term support from the 200 DMA and strong fundamentals provide stability.
Would you like me to extend this into a sector overlay comparison with peers like Vedanta, Hind Copper, and Nalco, or focus on intraday trade signals for sharper execution?