HINDALCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.9
| Stock Code | HINDALCO | Market Cap | 2,01,436 Cr. | Current Price | 897 ₹ | High / Low | 1,030 ₹ |
| Stock P/E | 23.1 | Book Value | 326 ₹ | Dividend Yield | 0.56 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 923 ₹ | DMA 200 | 823 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | -0.94 % | PAT Qtr | 3,017 Cr. | PAT Prev Qtr | 2,266 Cr. |
| RSI | 42.0 | MACD | -2.04 | Volume | 49,27,427 | Avg Vol 1Wk | 73,36,806 |
| Low price | 546 ₹ | High price | 1,030 ₹ | PEG Ratio | 9.60 | Debt to equity | 0.18 |
| 52w Index | 72.6 % | Qtr Profit Var | 106 % | EPS | 38.7 ₹ | Industry PE | 16.0 |
📊 HINDALCO shows strong earnings momentum but faces short-term technical weakness. The RSI at 42.0 suggests neutral momentum, while MACD (-2.04) indicates mild bearishness. The current price (₹897) is below the 50 DMA (₹923) but above the 200 DMA (₹823), reflecting mixed signals. Fundamentals are solid with ROCE (12.9%), ROE (8.98%), and a sharp quarterly PAT growth (+106%). However, valuation is stretched with a P/E of 23.1 compared to industry P/E of 16.0, and PEG ratio (9.60) suggests limited growth relative to valuation.
💡 Optimal Entry Price: ₹880–₹900, near current levels and close to support.
📈 Exit Strategy (if already holding): Consider exiting around ₹920–₹940 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT growth from ₹2,266 Cr. to ₹3,017 Cr. (+106%).
- EPS of ₹38.7 supports valuation strength.
- Low debt-to-equity ratio (0.18) indicates financial stability.
- 52-week index gain of 72.6% highlights strong long-term performance.
⚠️ Limitation
- P/E of 23.1 is higher than industry average (16.0).
- PEG ratio of 9.60 suggests limited growth potential.
- Dividend yield of 0.56% is modest.
- Stock trading below 50 DMA reflects short-term weakness.
📉 Company Negative News
- DII holdings declined (-0.94%), showing reduced domestic institutional support.
- MACD (-2.04) indicates bearish momentum.
📈 Company Positive News
- FII holdings increased slightly (+0.03%), showing foreign investor confidence.
- Quarterly profit growth (+106%) reflects strong earnings momentum.
🏭 Industry
- Metals and mining sector remains cyclical, influenced by global commodity prices.
- Industry P/E at 16.0 makes HINDALCO relatively expensive (P/E 23.1).
🔎 Conclusion
HINDALCO is fundamentally strong with robust earnings growth but faces short-term technical weakness. It may be suitable for swing trading if entered near ₹880–₹900, with a target around ₹920–₹940. Traders should monitor RSI and volume trends to confirm momentum before committing heavily.