Hindalco Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
9%
5 Years:
11%
3 Years:
18%
TTM:
1%
Compounded Profit Growth
10 Years:
17%
5 Years:
14%
3 Years:
40%
TTM:
30%
Stock Price CAGR
10 Years:
18%
5 Years:
33%
3 Years:
16%
1 Year:
58%
Return on Equity
10 Years:
9%
5 Years:
11%
3 Years:
13%
Last Year:
10%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
191
206
207
207
223
223
222
222
222
222
222
222
Reserves
34,597
40,398
38,122
40,402
45,836
54,629
57,279
58,095
66,311
77,969
94,584
105,924
Borrowings
56,951
64,756
68,468
67,552
63,817
52,074
52,415
68,399
67,206
64,486
60,291
56,356
Other Liabilities
28,850
32,621
34,950
32,986
36,268
40,088
42,056
41,902
55,083
79,178
68,392
68,221
Total Liabilities
120,590
137,982
141,746
141,146
146,144
147,014
151,972
168,618
188,822
221,855
223,489
230,723
Fixed Assets
37,929
61,163
71,959
85,648
84,687
85,088
85,860
89,195
100,269
106,874
110,626
111,810
CWIP
33,834
23,059
14,111
4,214
1,814
2,063
4,097
7,721
10,202
4,945
7,700
14,867
Investments
12,601
12,961
12,346
12,463
15,157
10,781
9,012
9,411
17,133
14,119
14,116
15,444
Other Assets
36,226
40,798
43,330
38,821
44,486
49,081
53,003
62,291
61,218
95,917
91,047
88,602
Total Assets
120,590
137,982
141,746
141,146
146,144
147,014
151,972
168,618
188,822
221,855
223,489
230,723
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
2,977
7,956
7,143
11,688
12,687
10,898
11,977
12,745
17,232
16,838
19,208
24,056
Cash from Investing Activity
-13,801
-8,095
-3,873
-3,220
-2,876
5,333
-5,456
-7,227
-25,280
-6,773
-7,559
-14,267
Cash from Financing Activity
10,278
1,493
-2,437
-8,862
-5,552
-16,412
-5,466
6,656
-4,882
-6,765
-10,450
-10,817
Net Cash Flow
-545
1,353
833
-394
4,259
-181
1,055
12,174
-12,930
3,300
1,199
-1,028
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
-49.00
-56.00
-60.00
-60.00
-51.00
-39.00
-37.00
-54.00
-50.00
-36.00
-38.00
-33.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Hindalco Industries Ltd as of October 5, 2024 is: ₹740.07
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.
As of October 5, 2024, Hindalco Industries Ltd is Overvalued by 1.06% compared to the current share price ₹748.00
Intrinsic Value of Hindalco Industries Ltd as of October 5, 2024 is: ₹927.57
Calculation basis:
Intrinsic 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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 5, 2024, Hindalco Industries Ltd is Undervalued by 24.01% compared to the current share price ₹748.00
Last 5 Year EPS CAGR: 25.34%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of 29.50, which is a positive sign.
The company has shown consistent growth in sales (139.69 cr) and profit (17.92 cr) over the years.
The stock has a low average ROCE of 9.00%, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 48.25, which may not be favorable.
The company has higher borrowings (61,897.58) compared to reserves (59,512.17), which may suggest financial risk.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindalco Industries Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 9.56% (Industry Average ROE: 10.4%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 15.3 (Industry average Stock P/E: 31.59)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0.51
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
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
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindalco Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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