metals · HINDALCO
Hindalco Industries
Hindalco Industries: PE above historical average. NARROW LEADERSHIP regime.
Price
₹970.4
Price 2026-07-30
5 day
+2.93%
Short-term move
1 month
+1.97%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹216.8k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Hindalco Industries (HINDALCO) in the metals sector?”
Price chart
₹936
+36.14% over period
About Hindalco Industries
Hindalco Industries Limited, together with its subsidiaries, manufactures and distributes aluminum and copper products in India and internationally. It operates through four segments: Novelis, Aluminium Upstream, Aluminium Downstream, and Copper. The company offers primary aluminum, such as ingots, wirerods, primary foundry alloys, and billets; flat rolled products, including building and pattern sheets, PCB entry and cold-rolled sheets, closure and fin stocks, cable wrap and lamp cap stocks, foil and litho stocks, spiral fin stocks, circles, hot-rolled plates, cold-rolled coils, and flooring sheets/tread plates; extrusions; and foils, as well as aluminium sheet and light gauge products. It also engages in bauxite and coal mining, refineries, and metal and power; and specialty alumina solutions, including refractory, ceramic, polishing, flame retardant, battery, and water treatment solutions. In addition, the company provides copper wire and recycled rods, alloy rods, IGT tubes, and cathodes; precious metals, such as gold and silver bars, selenium, and platinum group metals; and di-ammonium phosphate, as well as internally grooved copper tube and copper scrap recycling operation...
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -11.6% over 14 days) — not a reliable pattern.
52-week position
Trading at 82.5% of 52-week high
Technicals
RSI 14
51.3
Trend
mixed
50 DMA
Below
200 DMA
Above
Key metrics
P/E ratio
16.1
57th pct · 7 quarterly points (limited history)
P/B
1.6
ROE
10.3%
Moderate profitability — 10.3% ROE
Market cap
₹216.8k Cr
Revenue growth
2040.0% YoY
Promoter
36.4%
52-week range
₹657.5 – ₹1,176
82.5% of high
RSI (14)
51.3
mixed
vs 50 DMA
Below
DMA ₹1,005.64
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Hindalco Industries scores 60/100 on fundamentals (adequate). Hindalco Industries: PE above historical average. NARROW LEADERSHIP regime.
Fundamental Score: 60/100 · ADEQUATE · 2 signals detected
DuPont Analysis
ROE 9.8% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 9.8% is modest margin-driven and stable. Net margin 4.9%, asset turnover 0.79x, leverage 2.5x.
What This Means
Net margin of 4.9% means the company keeps ₹4.9 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.79x means the company efficiently uses its assets to generate revenue. Leverage of 2.5x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
32.4%
Operating
8.0%
Net
4.9%
Gross margin 32.4% → operating margin 8.0% → net margin 4.9%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.8x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 6.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 4.5x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -7.2% — spending more than earning. Check capex cycle.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| JSWSTEEL JSW Steel | ₹1,270.8 | +1.9% | 13.7 | 27.3% | 1420% | ₹3.0L Cr |
| HINDZINC Hindustan Zinc | ₹535.9 | +0.9% | 16.2 | 76.9% | 4300% | ₹2.2L Cr |
| JINDALSTEL Jindal Steel | ₹1,093.7 | +5.0% | 31.2 | 6.8% | 2300% | ₹1.1L Cr |
| NMDC NMDC | ₹85.01 | +2.9% | 10 | 23.4% | 6190% | ₹74.2k Cr |
| NATIONALUM National Aluminium Co | ₹347.65 | +0.5% | 10.2 | 29.4% | -480% | ₹62.9k Cr |
| APLAPOLLO APL Apollo Tubes | ₹1,893.1 | +3.4% | 42 | 25.3% | 1360% | ₹50.5k Cr |
| HINDCOPPER Hindustan Copper | ₹480.25 | -2.4% | 52.1 | 30.6% | 5810% | ₹47.9k Cr |
| JINDALSAW Jindal Saw | ₹254.3 | -2.5% | 17.2 | 8% | -820% | ₹16.7k Cr |
| HINDALCO Hindalco Industries | ₹970.4 | +1.5% | 16.1 | 10.3% | 2040% | ₹2.2L Cr |
Tensions to watch
Promoter holding at 36.4% — neither distress selling nor aggressive buying
No strong insider signal. Watch for changes in promoter stake as a leading indicator.
Key Watchpoints
Breaks above ₹1019 (+5%)
Trend reversal confirmation
Breaks below ₹922 (-5%)
Further downside risk
PE reverts to median of 16.0 (7 quarterly points (limited history))
Valuation normalization
Metals sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹6660K Cr. May indicate restructuring, impairment, or one-time costs.
Working capital is consuming significant cash. Operational efficiency declining.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Governance structure concerns. Independent director representation may be weak.
Company not overvalued on revenue basis.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes
