metals
Hindalco Industries
HINDALCO · Nifty 50
₹1,007.9
Price 2026-06-17
At a Glance
Fundamental
60/100
ADEQUATE
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Hindalco Industries scores 60/100 on fundamentals (adequate). Hindalco Industries: PE below historical average. BROAD EXPANSION 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 of 4.9% × asset turnover of 0.79x × leverage of 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
Hindalco Industries is compared against 10 peers in the metals sector.
Key Watchpoints
Breaks above ₹1058 (+5%)
Trend reversal confirmation
Breaks below ₹958 (-5%)
Further downside risk
PE reverts to 5Y median of 17.0
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.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Special charges of ₹7281K Cr. May indicate restructuring, impairment, or one-time costs.
Working capital is consuming significant cash. Operational efficiency declining.
Governance structure concerns. Independent director representation may be weak.
Company not overvalued on revenue basis.
🔴 3 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes