Hindalco Industries Limited (HINDALCO) AI Stock Analysis

• Market Cap: ₹1.81T
• Dividend Yield: 0.62%
• Average Volume (3M): 140.51K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.98
• Revenue Growth: 13.19%
• EPS Growth: 42.27%
• Country: IN
• Employees: 71,217
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 21.32
• Shares Outstanding: 2,247,226,600
• 10 Day Avg. Volume: 235,295
• 30 Day Avg. Volume: 140,508
• PEG Ratio: 0.16
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 39.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹830.00
• Price Target Upside: 2.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹883.00 ▲(9.53% Upside)

Hindalco Industries Limited demonstrates strong financial health and positive technical momentum, contributing to a solid overall stock score. The company's reasonable valuation further supports its investment potential. However, the absence of earnings call data and notable corporate events limits additional insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust business expansion and increased market penetration, supporting long-term sustainability.

Profitability Improvement

Improving profit margins reflect enhanced operational efficiency and cost management, contributing to long-term profitability.

Balance Sheet Stability

A stable and growing equity base indicates financial health and provides a solid foundation for future growth and investment.

Negative Factors

Leverage Management

While leverage is moderate, the need for cautious management suggests potential risk if debt levels increase, impacting financial flexibility.

Free Cash Flow Variability

Variability in free cash flow growth could challenge sustained cash flow generation, affecting the ability to invest and service debt consistently.

Absence of Earnings Call Data

Lack of earnings call data limits insights into management's strategic direction and operational priorities, impacting investor confidence.

Hindalco Industries Limited Business Overview & Revenue Model

Company Description

Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is one of the largest producers of aluminum and copper in India. Established in 1962, Hindalco operates in two primary sectors: aluminum and copper. The company’s aluminum segment encompasses the production of a wide range of aluminum products, including primary aluminum, rolled products, extrusions, and aluminum foil. Its copper segment is involved in the production of copper cathodes, rods, and other copper products. Hindalco’s operations are characterized by a commitment to sustainable practices and innovation, serving diverse industries such as automotive, packaging, construction, and electrical.

How the Company Makes Money

Hindalco generates revenue primarily through the production and sale of aluminum and copper products. Key revenue streams include the manufacturing of primary aluminum, which is sold to various industries, and copper products, which cater to electrical and construction sectors. The company also earns income from value-added products like aluminum foils and extrusions. Additionally, Hindalco benefits from long-term supply contracts and partnerships with major clients across multiple sectors, enhancing its market stability and revenue predictability. The company’s focus on operational efficiency and cost management further contributes to its profitability, alongside a strategic emphasis on expanding its global footprint through acquisitions and joint ventures.

Hindalco Industries Limited Financial Statement Overview

Summary

Hindalco Industries Limited shows strong financial performance with significant revenue and profitability growth. The income statement is robust, the balance sheet is stable with moderate leverage, and cash flow generation is healthy despite some variability in free cash flow.

Income Statement

Hindalco Industries Limited has demonstrated strong revenue growth, increasing from 1,311 billion in 2021 to 2,384 billion in 2025, indicating robust business expansion. The gross profit margin has improved consistently, reaching 33.2% in 2025. Net profit margin also shows a positive trajectory, improving from 2.7% in 2021 to 6.7% in 2025. EBIT and EBITDA margins have strengthened, suggesting improved operational efficiency. Overall, the income statement reflects a solid growth trajectory and enhanced profitability.

Balance Sheet

The company's balance sheet reveals a stable equity base with stockholders' equity increasing from 583 billion in 2020 to 1,237 billion in 2025. The debt-to-equity ratio has been maintained at a reasonable level, indicating moderate leverage. However, the equity ratio shows room for improvement, suggesting a balanced but slightly leveraged capital structure. The return on equity remains robust, reflecting effective use of shareholder capital. Overall, the balance sheet displays stability but highlights the need for cautious leverage management.

Cash Flow

Hindalco's cash flow statement indicates consistent operating cash flow generation, with a slight growth pattern. The free cash flow, although fluctuating, has remained positive, supporting the company's ability to invest and service debt. The operating cash flow to net income ratio is solid, indicating efficient cash conversion. However, free cash flow growth shows some variability, suggesting potential challenges in sustaining cash flow growth. Overall, the cash flow statement reflects healthy cash generation but highlights some fluctuations in free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46T	2.38T	2.15T	2.22T	1.94T	1.32T
Gross Profit	843.89B	791.51B	685.84B	343.54B	649.25B	469.00B
EBITDA	304.35B	327.88B	253.89B	239.29B	295.24B	180.93B
Net Income	169.31B	160.01B	101.55B	100.97B	137.30B	34.83B
Balance Sheet
Total Assets	0.00	2.66T	2.32T	2.25T	2.23T	1.90T
Cash, Cash Equivalents and Short-Term Investments	239.94B	213.78B	181.41B	213.32B	228.28B	180.85B
Total Debt	0.00	656.42B	608.31B	660.75B	669.45B	672.09B
Total Liabilities	-1.24T	1.42T	1.26T	1.30T	1.45T	1.23T
Stockholders Equity	1.24T	1.24T	1.06T	948.06B	781.91B	665.33B
Cash Flow
Free Cash Flow	0.00	37.61B	83.28B	93.66B	114.12B	116.67B
Operating Cash Flow	0.00	244.10B	240.56B	192.08B	168.38B	172.32B
Investing Cash Flow	0.00	-247.39B	-142.76B	-80.16B	-70.74B	-256.37B
Financing Cash Flow	0.00	-18.16B	-108.17B	-104.50B	-67.65B	-48.82B

Hindalco Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 806.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDALCO, the sentiment is Positive. The current price of 806.2 is above the 20-day moving average (MA) of 797.59, above the 50-day MA of 791.27, and above the 200-day MA of 695.84, indicating a bullish trend. The MACD of 3.57 indicates Negative momentum. The RSI at 57.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HINDALCO.

Hindalco Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HINDALCO	75 Outperform	₹1.81T	10.08	―	0.62%	13.19%	42.27%
VEDL	75 Outperform	₹1.99T	16.51	―	9.57%	8.87%	2.25%
TATASTEEL	71 Outperform	₹2.24T	49.26	―	2.15%	-0.42%	132.70%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.10T	39.92	―	0.19%	-2.21%	-46.30%

Hindalco Industries Limited Corporate Events

Hindalco’s AluChem Acquisition Faces Delay Amid U.S. Government Shutdown

Hindalco Industries Limited has announced an update regarding the acquisition of AluChem Companies, Inc. by its subsidiary, Aditya Holdings LLC. The review process by the Committee on Foreign Investment in the United States (CFIUS) has been delayed due to a U.S. federal government shutdown, impacting the timeline for the acquisition’s completion. The company will provide further updates once the review process resumes and concludes, which may take up to 105 days after the shutdown ends.

Fire Incident at Hindalco’s Novelis Plant Halts Production

Hindalco Industries Limited reported a fire incident at its subsidiary Novelis Inc.’s Oswego Plant in New York. The fire, which occurred on September 16, 2025, did not result in any injuries, but production has been halted as the company assesses the damage and investigates the cause. The plant is insured for property damage and business interruption, ensuring some financial protection. The incident may temporarily impact operations, but the company is expected to provide further updates as more information becomes available.

Novelis Launches Tender Offer and Plans New Note Issuance

Novelis Inc., a subsidiary of Hindalco Industries, has initiated a cash tender offer to purchase all outstanding 3.250% Senior Notes due November 2026. Additionally, Novelis plans to offer $750 million in senior unsecured notes due 2033, which could impact its financial strategy and market positioning.