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Check Before You Invest : Hindalco Industries Ltd

BSE: 500440 NSE: HINDALCO ISIN: INE038A01020
  |   Sector:  Metals & Mining   |   Industry:  Metal - Non Ferrous

Snapshot

Q.1 Which industry/sub-sector does Hindalco Industries Ltd belong to?
Hindalco Industries Ltd belongs to the Metals & Mining sector, operating specifically within the Metal - Non Ferrous segment.
Q.2 Is Hindalco Industries Ltd a good quality company?
Hindalco Industries Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Hindalco Industries Ltd undervalued or overvalued?
Hindalco Industries Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Hindalco Industries Ltd a good buy now?
Hindalco Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindalco Industries Ltd?
Hindalco Industries Ltd revenue growth is 10.4% for FY-2025 , which is below its 5 year CAGR of 15.1% , indicating slower growth.
Q.2 Gross Profit margin of Hindalco Industries Ltd?
Hindalco Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025 , which is above its 5 year median of 11.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Hindalco Industries Ltd?
Hindalco Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.47% for FY-2025 , which is in line with its 5 year median of 13.47% indicating stable margins.
Q.4 Net Profit Margin of Hindalco Industries Ltd?
Hindalco Industries Ltd Net Profit Margin is 6.71% for FY-2025 , is above with its 5 year median of 4.7%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13 11.4
Operating Profit Margin 13.47 13.47
Net Profit Margin 6.71 4.7
Q.5 Return on Asset of Hindalco Industries Ltd?
Hindalco Industries Ltd Return on Asset is 6.47%, which is above its 5 year historical median of 4.53%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindalco Industries Ltd?
Hindalco Industries Ltd Return on equity is 13.89% for FY-2025 , which is above its historical median of 11.65%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindalco Industries Ltd?
Hindalco Industries Ltd Return on capital employed is 14.61% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Hindalco Industries Ltd?
Hindalco Industries Ltd Cash conversion cycle is 30 days, above its historical median of 30 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.96 0.95
ROE 13.89 11.65
ROCE 14.61 11.16
Cash Conversion Cycle 30 days 30 days
Q.9 Debt to Equity ratio of Hindalco Industries Ltd?
Hindalco Industries Ltd Debt-to-Equity ratio is 0.51 , which is lower with the industry average of 0.67 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindalco Industries Ltd?
Hindalco Industries Ltd Debt to cash flow from operations is 2.61 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindalco Industries Ltd?
Promoters hold 34.64% of the Hindalco Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindalco Industries Ltd vs industry peers?
Hindalco Industries Ltd revenue CAGR is 15.08% , compared to the industry median CAGR of 12.85% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,38,496 1,43,727
Gross Profit 31,004.5 21,596.2
Operating Profit 31,805 23,382
Net Profit 16,002 10,155
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.96 0.83
ROE 13.89 27.76
ROCE 14.61 25.2
Cash Conversion Cycle (days) 29.96 9

Valuation & price assessment

Q.1 Stock return of Hindalco Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 26.9% 22.9% 34.3% 70.6%
Q.3 Valuation ratios of Hindalco Industries Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 14.53 21.81 24.79
Price to Book 1.71 0.75 2.38
Price to Sales 0.89 0.38 0.58
EV to EBITDA 8.11 6.34 11.82

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