Hindalco Industries Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹1,41,248.79 crore, a PE ratio of 13.95, a debt-to-equity ratio of 0.53, and a return on equity (ROE) of 10.2%. These figures reflect the company’s financial health and solid market position.
Content:
- Hindalco Industries Ltd Overview
- Hindalco Industries Financial Results
- Hindalco Industries Financial Analysis
- Hindalco Industries Company Metrics
- Hindalco Industries Stock Performance
- Hindalco Industries Peer Comparison
- Hindalco Industries Shareholding Pattern
- Hindalco Industries History
- How To Invest In Hindalco Industries Ltd Share?
- Hindalco Industries Limited Fundamental Analysis – FAQs
Hindalco Industries Ltd Overview
Hindalco Industries Ltd is a leading Indian metals company specializing in aluminum and copper production. It is renowned for its significant contributions to the metals industry and its extensive global operations.
The company has a market capitalization of ₹1,41,248.79 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹715, significantly above its 52-week low of ₹438, indicating strong investor confidence. The all-time high of the stock is ₹715, while the all-time low is ₹36.8.
Hindalco Industries Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹1,95,059 crore to ₹2,15,962 crore and EBITDA rising from ₹29,483 crore to ₹25,368 crore. The company maintained a stable OPM and improved RoNW over the years.
- Revenue Trend: Sales increased from ₹1,95,059 crore in FY 22 to ₹2,23,202 crore in FY 23, and further to ₹2,15,962 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: The company’s equity and liabilities structure showcases financial stability and strategic management. It effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Operating Profit Margin (OPM) decreased from 15% in FY 22 to 10% in FY 23, and improved to 11% in FY 24, reflecting fluctuations in operational efficiency.
- Earnings per Share (EPS): EPS decreased from ₹61.73 in FY 22 to ₹45.42 in FY 23, and slightly increased to ₹45.71 in FY 24, indicating variability in profit growth per share.
- Return on Net Worth (RoNW): RoNW improved from 13.94% in FY 22 to 16.13% in FY 23, and further to 17.15% in FY 24, indicating better returns on shareholders’ equity and increasing profitability.
- Financial Position: The company’s financial position strengthened with EBITDA decreasing from ₹29,483 crore in FY 22 to ₹23,923 crore in FY 23, and improving to ₹25,368 crore in FY 24, showcasing robust financial health and management.
Hindalco Industries Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 2,15,962 | 2,23,202 | 1,95,059 |
| Expenses | 1,92,090 | 2,00,536 | 1,66,712 |
| Operating Profit | 23,872 | 22,666 | 28,347 |
| OPM % | 11 | 10 | 15 |
| Other Income | 1,517 | 1,298 | 1,718 |
| EBITDA | 25,368 | 23,923 | 29,483 |
| Interest | 3,858 | 3,646 | 3,768 |
| Depreciation | 7,521 | 7,086 | 6,729 |
| Profit Before Tax | 14,010 | 13,232 | 19,568 |
| Tax % | 27.53 | 23.76 | 27.46 |
| Net Profit | 10,155 | 10,097 | 13,730 |
All values in ₹ Crores.
Hindalco Industries Company Metrics
Hindalco Industries has a market cap of ₹1,41,248.79 crore, a book value of ₹472 per share, and a face value of ₹1.00. With significant debt of ₹56,356 crore, EBITDA of ₹25,368 crore, dividend yield of 0.55%, and EPS of ₹45.2, the company shows fluctuating performance.
Market Capitalization: Represents the total market value of Hindalco Industries’ outstanding shares, amounting to ₹1,41,248.79 crore.
Book Value: Hindalco Industries has a book value of ₹472 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of Hindalco Industries’ shares is ₹1.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: Hindalco Industries has an asset turnover ratio of 0.95, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: Hindalco Industries has a significant debt of ₹56,356 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: Hindalco Industries’ EBITDA decreased from ₹29,483 crore in FY 22 to ₹23,923 crore in FY 23, and further improved to ₹25,368 crore in FY 24, indicating fluctuating operational performance and profitability over these years.
Dividend Yield: Hindalco Industries has a dividend yield of 0.55%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): Hindalco Industries has an EPS of ₹45.2, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
Hindalco Industries Stock Performance
Hindalco Industries delivered impressive returns on investment with 39.6% over 1 year, 12.5% over 3 years, and 28.4% over 5 years, highlighting strong long-term performance and consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 39.6 |
| 3 Years | 12.5 |
| 5 Years | 28.4 |
Example: If an investor had invested ₹1,000 in Hindalco Industries’ stock:
1 year ago, their investment would be worth ₹1,396.
3 years ago, their investment would have grown to ₹1,125.
5 years ago, their investment would have increased to approximately ₹1,284.
This highlights strong long-term performance and consistent profitability for investors.
Hindalco Industries Peer Comparison
Hindalco Industries has a CMP of ₹627.8, a market cap of ₹1,41,080.19 crore, and a P/E of 13.95. Peers like National Aluminium, MMP Industries, Maan Aluminium, Arfin India, Euro Panel, and Baheti Recycling show varied metrics with different market caps, P/E ratios, and returns.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Hindalco Industries | 627.8 | 141080.19 | 13.95 | 10.15 | 45.19 | 39.61 | 11.29 | 0.55 |
| Natl. Aluminium | 173 | 31773.7 | 15.88 | 12.67 | 12.59 | 92.18 | 16.95 | 1.75 |
| MMP Industries | 354.65 | 900.89 | 25.76 | 11.59 | 13.75 | 75.14 | 13.43 | 0.27 |
| Maan Aluminium | 124.8 | 674.99 | 20.62 | 22.33 | 6.06 | 65.5 | 24.94 | 0.59 |
| Arfin India | 38.5 | 649.57 | 72.84 | 8.91 | 0.55 | -2.65 | 13.59 | 0 |
| Euro Panel | 193.9 | 475.06 | 32.52 | 14.55 | 5.96 | 26.44 | 19.04 | 0 |
| Baheti Recycling | 295.5 | 306.4 | 42.55 | 20.91 | 6.94 | 178.33 | 18.4 | 0 |
Hindalco Industries Shareholding Pattern
Hindalco Industries’ shareholding pattern from FY 2023 to FY 2024 shows promoters holding steady at 34.64%. FIIs increased from 26.08% to 26.82%, DIIs slightly decreased from 30.01% to 29.5%, and retail and others decreased from 9.26% to 9.03%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 34.64 | 34.64 | 34.64 |
| FII | 26.82 | 26.08 | 28.85 |
| DII | 29.5 | 30.01 | 22.95 |
| Retail & others | 9.03 | 9.26 | 13.55 |
All values in %
Hindalco Industries History
Hindalco Industries was founded in 1958 as Hindustan Aluminum Corporation by the Aditya Birla Group. It started as an aluminum manufacturing company and quickly established itself as a major player in the Indian aluminum industry.
In the 1960s and 1970s, Hindalco expanded its operations by setting up new plants and increasing its production capacity. The company also diversified into other sectors, including copper production, making it a versatile metal manufacturer.
In 2007, Hindalco acquired Novelis Inc., a leading aluminum rolling company, for $6 billion. This acquisition significantly expanded Hindalco’s global footprint, making it one of the world’s largest producers of aluminum-rolled products.
Throughout its history, Hindalco has focused on technological advancements and sustainable practices. The company has invested in state-of-the-art technology and implemented eco-friendly initiatives to reduce its carbon footprint and promote sustainable development.
Today, Hindalco is a leading global metals powerhouse with a presence in over 15 countries. It is known for its robust financial performance, innovation, and commitment to sustainability, making it a key player in the global metal industry.
How To Invest In Hindalco Industries Ltd Share?
Investing in Hindalco Industries shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Hindalco Industries shares and place your buy order.
Hindalco Industries Limited Fundamental Analysis – FAQs
Hindalco Industries’ fundamental analysis shows a market capitalization of ₹1,41,248.79 crore, a PE ratio of 13.95, and a return on equity (ROE) of 10.2%. The company demonstrates solid financial performance and effective leverage management, reflecting its strong market position.
Hindalco Industries Ltd’s market capitalization is ₹1,41,248.79 crore, reflecting the total market value of its outstanding shares.
Hindalco Industries Limited is a leading Indian aluminum and copper manufacturing company, part of the Aditya Birla Group, renowned for its extensive operations in the metals sector and its significant contributions to global markets.
Hindalco Industries is owned by the Aditya Birla Group, a multinational conglomerate with a.diverse business interests, founded by Seth Shiv Narayan Birl
The main shareholders of Hindalco Industries include the Aditya Birla Group, institutional investors, mutual funds, and public shareholders, indicating a diverse and robust ownership structure.
Hindalco Industries operates in the metals and mining industry, specializing in the production of aluminum and copper, and is a major player in the global non-ferrous metals sector.
To invest in Hindalco Industries Ltd shares, one can open a brokerage account, conduct research, and buy shares through the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE) where the stock is listed.
Determining if Hindalco Industries is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 13.95, Hindalco appears reasonably valued compared to industry standards. However, investors should conduct further analysis to determine its valuation relative to its peers and market conditions.
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