HINDALCO - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 4.1
| Stock Code | HINDALCO | Market Cap | 1,91,913 Cr. | Current Price | 854 ₹ | High / Low | 864 ₹ |
| Stock P/E | 26.8 | Book Value | 326 ₹ | Dividend Yield | 0.58 % | ROCE | 12.9 % |
| ROE | 8.98 % | Face Value | 1.00 ₹ | DMA 50 | 804 ₹ | DMA 200 | 730 ₹ |
| Chg in FII Hold | 0.53 % | Chg in DII Hold | -0.82 % | PAT Qtr | 2,266 Cr. | PAT Prev Qtr | 1,862 Cr. |
| RSI | 65.7 | MACD | 13.2 | Volume | 42,77,747 | Avg Vol 1Wk | 32,54,083 |
| Low price | 546 ₹ | High price | 864 ₹ | PEG Ratio | 11.1 | Debt to equity | 0.18 |
| 52w Index | 96.8 % | Qtr Profit Var | 19.8 % | EPS | 31.8 ₹ | Industry PE | 20.6 |
📊 Hindalco shows strong potential for swing trading. The stock is trading above both its 50 DMA (₹804) and 200 DMA (₹730), reflecting bullish momentum. RSI at 65.7 indicates it is approaching overbought territory, while MACD positive (13.2) confirms upward strength. An optimal entry would be near ₹830–₹840 on minor pullbacks. If already holding, consider exiting around ₹860–₹870, close to its 52-week high and 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.
- ✅ FII holdings increased by 0.53%, reflecting foreign investor confidence.
- ✅ Trading above both 50 DMA and 200 DMA indicates strong technical support.
- ✅ 52-week performance of 96.8% highlights strong investor sentiment.
Limitation
- ⚠️ ROCE (12.9%) and ROE (8.98%) are relatively modest compared to peers.
- ⚠️ PEG ratio of 11.1 suggests valuation is stretched relative to growth.
- ⚠️ DII holdings dropped by 0.82%, showing reduced domestic institutional support.
- ⚠️ Dividend yield of 0.58% is low, offering limited income for investors.
Company Negative News
- ❌ High valuation with P/E of 26.8 compared to industry average of 20.6.
- ❌ RSI at 65.7 indicates the stock is nearing overbought levels, which may trigger short-term corrections.
Company Positive News
- 🌟 Strong quarterly profit growth boosts investor confidence.
- 🌟 High trading volume (42.7L vs 32.5L average) shows strong market participation.
- 🌟 Consistent upward trend supported by DMA levels.
Industry
- 🏭 Metals industry trades at PE of 20.6, lower than Hindalco’s PE of 26.8, suggesting relative overvaluation.
- 🏭 Sector growth driven by global aluminum demand and infrastructure expansion supports long-term prospects.
Conclusion
📌 Hindalco is a technically strong candidate for swing trading, supported by rising profits and foreign investor interest. Entry near ₹830–₹840 is optimal, with exit around ₹860–₹870. Traders should be cautious of overbought RSI levels and stretched valuation, but momentum remains favorable in the short term.
I can also prepare a peer comparison with other metal sector stocks like Tata Steel or JSW Steel to highlight relative swing trade opportunities. Would you like me to set that up?
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