HINDALCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 4.2
| Stock Code | HINDALCO | Market Cap | 2,16,644 Cr. | Current Price | 964 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 30.3 | Book Value | 326 ₹ | Dividend Yield | 0.52 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 898 ₹ | DMA 200 | 784 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.94 % | PAT Qtr | 2,266 Cr. | PAT Prev Qtr | 1,862 Cr. |
| RSI | 56.8 | MACD | 19.5 | Volume | 45,52,172 | Avg Vol 1Wk | 1,02,12,082 |
| Low price | 546 ₹ | High price | 1,030 ₹ | PEG Ratio | 12.6 | Debt to equity | 0.18 |
| 52w Index | 86.4 % | Qtr Profit Var | 19.8 % | EPS | 31.8 ₹ | Industry PE | 26.8 |
📊 Hindalco shows strong earnings growth and favorable technical positioning, though valuations are slightly above industry averages. The RSI at 56.8 indicates neutral-to-positive momentum, while MACD (19.5) signals bullish sentiment. The optimal entry price would be around ₹950–₹960, near current support levels. If already holding, consider exiting around ₹1,015–₹1,025, close to the recent resistance zone.
✅ Positive
- Quarterly PAT growth from ₹1,862 Cr. to ₹2,266 Cr. (+19.8%) shows strong earnings momentum.
- EPS of ₹31.8 supports profitability visibility.
- ROCE (12.9%) and ROE (8.98%) reflect steady efficiency.
- Debt-to-equity ratio of 0.18 indicates manageable leverage.
- MACD (19.5) shows bullish momentum in the short term.
⚠️ Limitation
- P/E (30.3) is higher than industry PE (26.8), suggesting slight overvaluation.
- Dividend yield of 0.52% is modest.
- Trading volume lower than weekly average indicates reduced participation.
- PEG ratio of 12.6 suggests limited growth relative to valuation.
📉 Company Negative News
- DII holdings decreased (-0.94%), showing reduced domestic institutional support.
- ROE remains modest compared to peers, limiting return efficiency.
📈 Company Positive News
- Strong quarterly profit growth supports investor confidence.
- FII holdings increased slightly (+0.03%), showing foreign investor stability.
- Stock trading above DMA 50 and DMA 200 indicates long-term strength.
🏭 Industry
- Metals and aluminum industry benefits from global infrastructure and manufacturing demand.
- Industry PE at 26.8 highlights Hindalco’s slight premium valuation.
- Sector outlook remains positive with rising demand in automotive and construction.
🔎 Conclusion
Hindalco is a fundamentally strong company with solid profit growth and manageable debt. While valuations are slightly above industry averages, technical indicators suggest bullish momentum. For swing trading, entry near ₹950–₹960 is favorable, with an exit target around ₹1,015–₹1,025. Strong fundamentals and sector demand make it a good candidate for swing trades, though traders should monitor volume and valuation risks.