Hindalco Industries Ltd
Ticker: HINDALCO
Decent
48/100
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Investing Reference
Price
847.85
Market Cap
189505.29
Debt/Equity
0.5167
ROE %
13.921
PB
1.5317
Promoter %
34.641
Pledge %
0.000
1Y Rev Growth %
10.888
5Y Rev Growth %
15.108
NP Margin %
6.634
NP Margin 5Y Avg %
5.076
Trading Reference
1M Return %
13.172
6M Return %
34.132
1Y Return %
23.584
% Away 52W High
1.905
% Away 52W Low
55.156
Daily Volume
4138495
Investment Verdict
Buy
Score 77/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Momentum
Score 84/100 · Position size: 20%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
Hindalco Industries Ltd shows strong growth potential driven by aluminum demand and strategic expansions.
✅ Positives
- Strong demand for aluminum in various sectors
- Strategic acquisitions enhancing market position
- Robust financial performance and cash flow
⚠️ Negatives
- Volatility in raw material prices
- Regulatory challenges in mining operations
- Global economic uncertainties impacting demand
Verdict
Hindalco is well-positioned for growth despite risks.
Recommendation: Consider buying for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 31/10/2025
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Business Overview
Hindalco Industries Ltd is a flagship company of the Aditya Birla Group, specializing in the production of aluminium and copper. Catering to diverse sectors such as automotive, construction, and packaging, Hindalco plays a crucial role in India's industrial landscape. With a commitment to sustainability and innovation, the company is at the forefront of adopting eco-friendly practices. Its strong market presence and robust financial performance make it a reliable choice for investors looking for growth in the metals sector.
- Part of the prestigious Aditya Birla Group
- Leading producer of aluminium and copper
- Serves multiple industries including automotive and construction
- Focus on sustainability and innovation
- Strong financial performance and market presence
Investment Thesis
Hindalco Industries Ltd stands out as a compelling investment opportunity due to its strong promoter credibility, robust growth in digital services, and attractive valuation compared to peers. With a solid foundation and strategic initiatives, Hindalco is well-positioned for sustainable growth.
- Strong backing from the Aditya Birla Group enhances credibility.
- Significant growth potential in digital services sector.
- Valuation metrics indicate Hindalco is undervalued relative to peers.
- Diversified product portfolio mitigates risks and ensures stability.
- Commitment to sustainability aligns with global investment trends.
Opportunity vs Risk
Opportunities
- Strong demand for aluminum products
- Expansion in renewable energy sector
- Growing electric vehicle market
- Strategic acquisitions for growth
- Rising global metal prices
Risks ⚠️
- Volatility in raw material prices
- Regulatory changes impacting operations
- Global economic slowdown risks
- Currency fluctuation impacts
- Environmental compliance costs
Peer Perspective
Hindalco Industries Ltd trades at a discount to peers like Tata Steel and JSW Steel, primarily due to margin pressures. A sustained improvement in aluminum prices and margin stability could trigger a rerating.
Future Outlook
Hindalco Industries is well-positioned for growth, driven by strong demand in the aluminum sector; however, successful execution of cost control measures will be crucial to maximize profitability and sustain competitive advantage.
AI FAQs for Retail Users
- Q: What does Hindalco Industries do?A: Hindalco Industries is a leading manufacturer of aluminum and copper products in India.
- Q: Is Hindalco a good investment?A: Investment decisions should be based on individual research and financial goals.
- Q: What are the main products of Hindalco?A: Hindalco produces aluminum, copper, and various value-added products for multiple industries.
- Q: How does Hindalco perform in the market?A: Market performance can vary; it's essential to review financial reports and market trends.
- Q: What factors influence Hindalco's stock price?A: Stock price can be influenced by commodity prices, demand, and overall market conditions.
📊 Stock Investment Checklist (100 Points)
Hindalco Industries Ltd • Updated: 2025-09-17 02:25:37
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10BusinessHighHindalco operates in the aluminum and copper sectors, which are essential for various industries, indicating a future-ready sector.
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10GrowthHighThe company has shown consistent revenue and profit growth over the past few years.
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10ProfitabilityHighROE and ROCE are healthy, but OCF has shown some volatility compared to net profit.
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8ValuationHighP/E and P/B ratios are slightly above industry averages, indicating a potential overvaluation.
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7BalanceHighThe debt-to-equity ratio is manageable, but liquidity could be improved.
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9GovernanceHighPromoter holding is strong with minimal pledging, but transparency in disclosures can be enhanced.
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10DriversHighStrong growth drivers in renewable energy and electric vehicles, but execution risks remain.
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5TechnicalsGoodMarket sentiment is mixed with moderate liquidity and some recent price volatility.
Final Score & Verdict
Score 48 / 100
• Decent
Hindalco Industries Ltd shows decent potential with consistent growth and a strong market position, but faces challenges in valuation and liquidity.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 80/100
- Market Confidence: 72/100