Fundamental Analysis of Hindalco Industries Ltd

About the Company - Hindalco Industries Ltd

Hindalco Industries Ltd. is a Public Limited Listed company incorporated on 15/12/1958 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27020MH1958PLC011238 and registration number is 011238. Currently Company is involved in the business activities of Manufacture of aluminium from alumina and by other methods and products of aluminium and alloys. Company’s Total Operating Revenue is Rs. 67653.00 Cr. and Equity Capital is Rs. 222.00 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Aluminium	21st Floor, One International Centre, Tower 4, Near Prabhadevi Railway Station, Mumbai Maharashtra 400013	hilinvestors@adityabirla.com http://www.hindalco.com

Management
Name	Position Held
Mr. Kumar Mangalam Birla	Non Executive Chairman
Mr. Satish Pai	Managing Director
Mr. Praveen Kumar Maheshwari	WholeTime Director & CFO
Mrs. Rajashree Birla	Non Executive Director
Mr. Askaran Agarwala	Non Executive Director
Mr. Kailash Nath Bhandari	Independent Director
Mr. Yazdi Piroj Dandiwala	Independent Director
Ms. Alka Marezban Bharucha	Independent Director
Mr. Vikas Balia	Independent Director
Mr. Sudhir Mital	Independent Director
Mr. Anant Maheshwari	Independent Director

Basic Stock Data of Hindalco Industries Ltd

Last Updated: July 6, 2024, 12:03 pm

Market Cap	1,57,114 Cr.
Current Price	699
High / Low	715/422
Stock P/E	15.5
Book Value	472
Dividend Yield	0.43 %
ROCE	11.2 %
ROE	10.1 %
Face Value	1.00
PEG Ratio	0.89

Hindalco Industries Ltd Quarterly Results

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	34,958	40,507	41,358	47,665	50,272	55,764	58,018	56,176	53,151	55,857	52,991	54,169	52,808
Expenses	29,904	34,869	35,652	40,107	42,960	48,460	49,589	50,814	49,603	50,530	47,277	48,557	46,943
Operating Profit	5,054	5,638	5,706	7,558	7,312	7,304	8,429	5,362	3,548	5,327	5,714	5,612	5,865
OPM %	14%	14%	14%	16%	15%	13%	15%	10%	7%	10%	11%	10%	11%
Other Income	147	223	845	405	436	34	255	330	368	354	381	496	281
Interest	861	903	820	1,291	852	805	847	879	934	986	992	1,034	944
Depreciation	1,655	1,721	1,645	1,640	1,683	1,761	1,749	1,713	1,768	1,856	1,786	1,843	1,874
Profit before tax	2,685	3,237	4,086	5,032	5,213	4,772	6,088	3,100	1,214	2,839	3,317	3,231	3,328
Tax %	30%	40%	32%	32%	30%	19%	32%	29%	-12%	15%	26%	32%	30%
Net Profit	1,877	1,928	2,787	3,417	3,675	3,851	4,119	2,205	1,362	2,411	2,454	2,196	2,331
EPS in Rs	8.35	8.58	12.40	15.21	16.35	17.14	18.33	9.81	6.06	10.73	10.92	9.77	10.37

Last Updated: July 7, 2024, 5:54 am

Hindalco Industries Ltd Quarterly Chart

Hindalco Industries Ltd Profit & Loss

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	80,821	80,193	87,695	104,281	98,759	100,184	115,183	130,542	118,144	131,985	195,059	223,202	216,168
Expenses	72,856	72,494	79,671	95,437	90,981	87,867	101,488	115,031	103,838	114,449	166,712	200,536	195,967
Operating Profit	7,965	7,699	8,024	8,844	7,778	12,317	13,695	15,511	14,306	17,536	28,347	22,666	20,201
OPM %	10%	10%	9%	8%	8%	12%	12%	12%	12%	13%	15%	10%	9%
Other Income	783	1,111	677	-832	1,500	1,198	2,879	1,127	906	-964	1,253	1,307	1,599
Interest	1,758	2,079	2,702	4,178	5,134	5,742	3,911	3,778	4,197	3,738	3,768	3,646	3,946
Depreciation	2,645	2,822	3,347	3,493	4,347	4,457	4,506	4,777	5,091	6,628	6,729	7,086	7,253
Profit before tax	4,345	3,909	2,653	340	-203	3,315	8,157	8,083	5,924	6,206	19,103	13,241	10,601
Tax %	18%	23%	20%	75%	-245%	43%	25%	32%	36%	44%	28%	24%
Net Profit	3,608	3,007	2,195	259	-702	1,882	6,083	5,495	3,767	3,483	13,730	10,097	8,423
EPS in Rs	17.74	15.81	10.53	4.14	-1.21	8.47	27.10	24.48	16.77	15.50	61.10	44.93	37.48
Dividend Payout %	9%	6%	9%	24%	-82%	13%	4%	5%	6%	19%	6%	7%

Hindalco Industries Ltd Profit & Loss Yearly Chart

Hindalco Industries Ltd Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	11%
3 Years:	18%
TTM:	-3%

Compounded Profit Growth
10 Years:	17%
5 Years:	14%
3 Years:	45%
TTM:	0%

Stock Price CAGR
10 Years:	15%
5 Years:	28%
3 Years:	23%
1 Year:	63%

Return on Equity
10 Years:	9%
5 Years:	11%
3 Years:	13%
Last Year:	10%

Last Updated: June 29, 2024, 1:32 pm

Hindalco Industries Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	191	191	206	207	207	223	223	222	222	222	222	222	222
Reserves	31,179	34,597	40,398	38,122	40,402	45,836	54,629	57,279	58,095	66,311	77,969	94,584	99,273
Borrowings	41,016	56,951	64,756	68,468	67,552	63,817	52,074	52,415	68,399	67,206	64,486	60,291	58,372
Other Liabilities	29,016	28,850	32,621	34,950	32,986	36,268	40,088	42,056	41,902	55,073	79,178	68,392	66,874
Total Liabilities	101,402	120,590	137,982	141,746	141,146	146,144	147,014	151,972	168,618	188,812	221,855	223,489	224,741
Fixed Assets	35,300	37,929	61,163	71,959	85,648	84,687	85,088	85,860	89,195	100,269	106,874	110,626	110,753
CWIP	22,798	33,834	23,059	14,111	4,214	1,814	2,063	4,097	7,721	10,202	4,945	7,700	10,924
Investments	10,551	12,601	12,961	12,346	12,463	15,157	10,781	9,012	9,411	17,133	14,119	14,116	12,608
Other Assets	32,753	36,226	40,798	43,330	38,821	44,486	49,081	53,003	62,291	61,208	95,917	91,047	90,456
Total Assets	101,402	120,590	137,982	141,746	141,146	146,144	147,014	151,972	168,618	188,812	221,855	223,489	224,741

Hindalco Industries Ltd Reserves and Borrowings Chart

Hindalco Industries Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	7,547	2,977	7,956	7,143	11,688	12,687	10,898	11,977	12,745	17,232	16,838	19,208
Cash from Investing Activity	-13,220	-13,801	-8,095	-3,873	-3,220	-2,876	5,333	-5,456	-7,227	-25,280	-6,773	-7,664
Cash from Financing Activity	6,237	10,278	1,493	-2,437	-8,862	-5,552	-16,412	-5,466	6,656	-4,882	-6,765	-10,345
Net Cash Flow	564	-545	1,353	833	-394	4,259	-181	1,055	12,174	-12,930	3,300	1,199

Hindalco Industries Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	36	41	38	32	29	30	32	32	29	36	39	27
Inventory Days	94	108	114	104	103	120	115	103	120	146	138	111
Days Payable	79	72	89	87	92	115	108	96	98	135	128	93
Cash Conversion Cycle	52	76	64	49	40	36	38	39	51	47	49	45
Working Capital Days	37	54	44	34	37	7	27	30	32	20	19	25
ROCE %	9%	7%	5%	6%	4%	8%	10%	11%	9%	9%	17%	11%

Hindalco Industries Ltd Financial Efficiency Indicators Chart

Hindalco Industries Ltd Share Holding Pattern

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Promoters	34.64%	34.64%	34.64%	34.64%	34.65%	34.65%	34.65%	34.65%	34.65%	34.65%	34.65%	34.65%
FIIs	25.00%	24.95%	25.47%	25.99%	28.85%	24.76%	24.85%	25.66%	26.08%	26.25%	27.01%	27.89%
DIIs	20.81%	20.58%	20.61%	21.17%	19.22%	21.52%	26.80%	26.87%	26.20%	26.08%	25.78%	25.06%
Government	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.22%	0.22%	0.22%	0.22%	0.22%	0.35%
Public	19.28%	19.55%	18.97%	17.85%	16.96%	18.76%	13.11%	12.20%	12.44%	12.42%	11.92%	11.59%
Others	0.26%	0.26%	0.29%	0.34%	0.31%	0.29%	0.36%	0.41%	0.41%	0.39%	0.42%	0.47%
No. of Shareholders	3,48,471	4,21,300	4,04,878	5,06,562	5,03,729	7,03,180	7,45,952	6,48,797	6,76,110	6,66,489	6,13,244	5,49,231

Hindalco Industries Ltd Shareholding Pattern Chart

No. of Hindalco Industries Ltd Shareholders

Hindalco Industries Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
SBI Nifty 50 ETF	27,108,768	0.8	1245.65	12,983,805	2024-07-05	108.79%
SBI Equity Hybrid Fund	24,000,000	1.86	1102.8	12,983,805	2024-07-05	84.85%
SBI Blue Chip Fund	12,983,805	1.55	596.61	12,983,805	2024-07-05	0%
ICICI Prudential Bluechip Fund	10,588,237	1.18	486.53	12,983,805	2024-07-05	-18.45%
ICICI Prudential Equity & Debt Fund	9,308,585	1.63	427.73	12,983,805	2024-07-05	-28.31%
ICICI Prudential Balanced Advantage Fund	9,007,728	0.83	413.91	12,983,805	2024-07-05	-30.62%
SBI Multicap Fund	9,000,000	3.19	413.55	12,983,805	2024-07-05	-30.68%
Kotak Flexicap Fund - Regular Plan	7,500,000	0.88	344.63	12,983,805	2024-07-05	-42.24%
SBI Flexi Cap Fund	7,363,324	1.93	338.34	12,983,805	2024-07-05	-43.29%
SBI Long Term Equity Fund	6,700,000	1.95	307.87	12,983,805	2024-07-05	-48.4%

Hindalco Industries Ltd ROCE Trend

Hindalco Industries Ltd EPS Trend

Hindalco Industries Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	1.00	1.00	1.00	1.00	1.00
Basic EPS (Rs.)	45.71	45.42	61.73	15.66	16.94
Diluted EPS (Rs.)	45.65	45.36	61.65	15.65	16.93
Cash EPS (Rs.)	79.61	77.36	92.13	45.52	39.88
Book Value[Excl.RevalReserv]/Share (Rs.)	478.18	427.09	352.24	299.73	262.72
Book Value[Incl.RevalReserv]/Share (Rs.)	478.18	427.09	352.24	299.73	262.72
Revenue From Operations / Share (Rs.)	972.80	1005.41	878.64	594.53	532.18
PBDIT / Share (Rs.)	114.27	107.76	132.81	84.50	69.78
PBIT / Share (Rs.)	80.39	75.84	102.50	54.64	46.85
PBT / Share (Rs.)	63.11	59.60	88.14	35.59	26.67
Net Profit / Share (Rs.)	45.73	45.44	61.82	15.67	16.95
NP After MI And SOA / Share (Rs.)	45.74	45.48	61.85	15.69	16.97
PBDIT Margin (%)	11.74	10.71	15.11	14.21	13.11
PBIT Margin (%)	8.26	7.54	11.66	9.19	8.80
PBT Margin (%)	6.48	5.92	10.03	5.98	5.01
Net Profit Margin (%)	4.70	4.51	7.03	2.63	3.18
NP After MI And SOA Margin (%)	4.70	4.52	7.03	2.63	3.18
Return on Networth / Equity (%)	9.56	10.65	17.56	5.23	6.45
Return on Capital Employeed (%)	10.34	10.24	15.60	8.59	7.86
Return On Assets (%)	4.37	4.49	6.15	1.83	2.22
Long Term Debt / Equity (X)	0.44	0.54	0.66	0.88	1.00
Total Debt / Equity (X)	0.51	0.61	0.80	0.97	1.15
Asset Turnover Ratio (%)	0.94	0.48	0.46	0.33	0.34
Current Ratio (X)	1.39	1.48	1.28	1.39	1.78
Quick Ratio (X)	0.69	0.76	0.69	0.76	1.18
Inventory Turnover Ratio (X)	3.12	1.77	1.89	1.72	1.77
Dividend Payout Ratio (NP) (%)	0.00	8.81	4.85	6.37	7.08
Dividend Payout Ratio (CP) (%)	0.00	5.17	3.26	2.19	3.01
Earning Retention Ratio (%)	0.00	91.19	95.15	93.63	92.92
Cash Earning Retention Ratio (%)	0.00	94.83	96.74	97.81	96.99
Interest Coverage Ratio (X)	6.58	6.56	7.82	5.02	3.69
Interest Coverage Ratio (Post Tax) (X)	3.63	3.76	4.61	2.52	1.96
Enterprise Value (Cr.)	164494.90	132943.50	172305.20	128775.70	66771.30
EV / Net Operating Revenue (X)	0.76	0.59	0.88	0.97	0.56
EV / EBITDA (X)	6.48	5.56	5.84	6.87	4.31
MarketCap / Net Operating Revenue (X)	0.57	0.40	0.64	0.54	0.17
Retention Ratios (%)	0.00	91.18	95.14	93.62	92.91
Price / BV (X)	1.17	0.94	1.62	1.09	0.36
Price / Net Operating Revenue (X)	0.57	0.40	0.64	0.54	0.17
EarningsYield	0.08	0.11	0.10	0.04	0.17

Hindalco Industries Ltd Profitability Ratios (%)

Hindalco Industries Ltd Liquidity Ratios

Hindalco Industries Ltd Liquidity Ratios (%)

Hindalco Industries Ltd Interest Coverage Ratios (%)

Hindalco Industries Ltd Valuation Ratios

Fair Value

Fair Value: 742.09

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 6.16% compared to the current price 699

Intrinsic Value: 871.59

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 24.69% compared to the current price ₹699

Last 5 Year EPS CAGR: 17.45%

*Investments are subject to market risks

Strength and Weakness of Hindalco Industries Ltd Stock

Strength	Weakness
The company has shown consistent growth in sales (129.00 cr) and profit (16.77 cr) over the years.	The stock has a low average ROCE of 8.83%, which may not be favorable. The stock has a high average Working Capital Days of 30.50, which may not be favorable. The stock has a high average Cash Conversion Cycle of 48.83, which may not be favorable. The company has higher borrowings (60,446.38) compared to reserves (56,821.08), which may suggest financial risk.

FAQ

What is the latest fair value of Hindalco Industries Ltd?

The latest fair value of Hindalco Industries Ltd is ₹742.09.

What is the Market Cap of Hindalco Industries Ltd?

The Market Cap of Hindalco Industries Ltd is 1,57,114 Cr..

What is the current Stock Price of Hindalco Industries Ltd as on 06 July 2024?

The current stock price of Hindalco Industries Ltd as on 06 July 2024 is 699.

What is the High / Low of Hindalco Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindalco Industries Ltd stocks is 715/422.

What is the Stock P/E of Hindalco Industries Ltd?

The Stock P/E of Hindalco Industries Ltd is 15.5.

What is the Book Value of Hindalco Industries Ltd?

The Book Value of Hindalco Industries Ltd is 472.

What is the Dividend Yield of Hindalco Industries Ltd?

The Dividend Yield of Hindalco Industries Ltd is 0.43 %.

What is the ROCE of Hindalco Industries Ltd?

The ROCE of Hindalco Industries Ltd is 11.2 %.

What is the ROE of Hindalco Industries Ltd?

The ROE of Hindalco Industries Ltd is 10.1 %.

What is the Face Value of Hindalco Industries Ltd?

The Face Value of Hindalco Industries Ltd is 1.00.