Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

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.
INDUSTRYADDRESSCONTACT
Aluminium21st Floor, One International Centre, Tower 4, Near Prabhadevi Railway Station, Mumbai Maharashtra 400013hilinvestors@adityabirla.com
http://www.hindalco.com
Management
NamePosition Held
Mr. Kumar Mangalam BirlaNon Executive Chairman
Mr. Satish PaiManaging Director
Mr. Praveen Kumar MaheshwariWholeTime Director & CFO
Mrs. Rajashree BirlaNon Executive Director
Mr. Askaran AgarwalaNon Executive Director
Mr. Kailash Nath BhandariIndependent Director
Mr. Yazdi Piroj DandiwalaIndependent Director
Ms. Alka Marezban BharuchaIndependent Director
Mr. Vikas BaliaIndependent Director
Mr. Sudhir MitalIndependent Director
Mr. Anant MaheshwariIndependent Director

Basic Stock Data of Hindalco Industries Ltd

Last Updated: May 30, 2024, 6:21 am

Market Cap 1,52,158 Cr.
Current Price 677
High / Low699/398
Stock P/E16.2
Book Value 443
Dividend Yield0.44 %
ROCE11.3 %
ROE11.7 %
Face Value 1.00
PEG Ratio0.93

Hindalco Industries Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales34,95840,50741,35847,66550,27255,76458,01856,17653,15155,85752,99154,16952,808
Expenses29,90434,86935,65240,10742,96048,46049,58950,81449,60350,53047,27748,55746,943
Operating Profit5,0545,6385,7067,5587,3127,3048,4295,3623,5485,3275,7145,6125,865
OPM %14%14%14%16%15%13%15%10%7%10%11%10%11%
Other Income14722384540543634255330368354381496281
Interest8619038201,2918528058478799349869921,034944
Depreciation1,6551,7211,6451,6401,6831,7611,7491,7131,7681,8561,7861,8431,874
Profit before tax2,6853,2374,0865,0325,2134,7726,0883,1001,2142,8393,3173,2313,328
Tax %30%40%32%32%30%19%32%29%-12%15%26%32%30%
Net Profit1,8771,9282,7873,4173,6753,8514,1192,2051,3622,4112,4542,1962,331
EPS in Rs8.358.5812.4015.2116.3517.1418.339.816.0610.7310.929.7710.37

Last Updated: May 7, 2024, 11:42 pm

Hindalco Industries Ltd Quarterly Chart

Hindalco Industries Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales80,82180,19387,695104,28198,759100,184115,183130,542118,144131,985195,059223,202216,168
Expenses72,85672,49479,67195,43790,98187,867101,488115,031103,838114,449166,712200,536195,967
Operating Profit7,9657,6998,0248,8447,77812,31713,69515,51114,30617,53628,34722,66620,201
OPM %10%10%9%8%8%12%12%12%12%13%15%10%9%
Other Income7831,111677-8321,5001,1982,8791,127906-9641,2531,3071,599
Interest1,7582,0792,7024,1785,1345,7423,9113,7784,1973,7383,7683,6463,946
Depreciation2,6452,8223,3473,4934,3474,4574,5064,7775,0916,6286,7297,0867,253
Profit before tax4,3453,9092,653340-2033,3158,1578,0835,9246,20619,10313,24110,601
Tax %18%23%20%75%-245%43%25%32%36%44%28%24%
Net Profit3,6083,0072,195259-7021,8826,0835,4953,7673,48313,73010,0978,423
EPS in Rs17.7415.8110.534.14-1.218.4727.1024.4816.7715.5061.1044.9337.48
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:16%
5 Years:28%
3 Years:20%
1 Year:63%
Return on Equity
10 Years:9%
5 Years:11%
3 Years:13%
Last Year:10%

Last Updated: May 23, 2024, 3:43 pm

Hindalco Industries Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital191191206207207223223222222222222222222
Reserves31,17934,59740,39838,12240,40245,83654,62957,27958,09566,31177,96994,58499,273
Borrowings41,01656,95164,75668,46867,55263,81752,07452,41568,39967,20664,48660,29158,372
Other Liabilities29,01628,85032,62134,95032,98636,26840,08842,05641,90255,07379,17868,39266,874
Total Liabilities101,402120,590137,982141,746141,146146,144147,014151,972168,618188,812221,855223,489224,741
Fixed Assets35,30037,92961,16371,95985,64884,68785,08885,86089,195100,269106,874110,626110,753
CWIP22,79833,83423,05914,1114,2141,8142,0634,0977,72110,2024,9457,70010,924
Investments10,55112,60112,96112,34612,46315,15710,7819,0129,41117,13314,11914,11612,608
Other Assets32,75336,22640,79843,33038,82144,48649,08153,00362,29161,20895,91791,04790,456
Total Assets101,402120,590137,982141,746141,146146,144147,014151,972168,618188,812221,855223,489224,741

Hindalco Industries Ltd Reserves and Borrowings Chart

Hindalco Industries Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7,5472,9777,9567,14311,68812,68710,89811,97712,74517,23216,83819,208
Cash from Investing Activity -13,220-13,801-8,095-3,873-3,220-2,8765,333-5,456-7,227-25,280-6,773-7,664
Cash from Financing Activity 6,23710,2781,493-2,437-8,862-5,552-16,412-5,4666,656-4,882-6,765-10,345
Net Cash Flow564-5451,353833-3944,259-1811,05512,174-12,9303,3001,199

Hindalco Industries Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days364138322930323229363927
Inventory Days94108114104103120115103120146138111
Days Payable7972898792115108969813512893
Cash Conversion Cycle527664494036383951474945
Working Capital Days37544434377273032201925
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

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters34.64%34.64%34.64%34.64%34.65%34.65%34.65%34.65%34.65%34.65%34.65%34.65%
FIIs25.00%24.95%25.47%25.99%28.85%24.76%24.85%25.66%26.08%26.25%27.01%27.89%
DIIs20.81%20.58%20.61%21.17%19.22%21.52%26.80%26.87%26.20%26.08%25.78%25.06%
Government0.01%0.01%0.01%0.01%0.01%0.01%0.22%0.22%0.22%0.22%0.22%0.35%
Public19.28%19.55%18.97%17.85%16.96%18.76%13.11%12.20%12.44%12.42%11.92%11.59%
Others0.26%0.26%0.29%0.34%0.31%0.29%0.36%0.41%0.41%0.39%0.42%0.47%
No. of Shareholders3,48,4714,21,3004,04,8785,06,5625,03,7297,03,1807,45,9526,48,7976,76,1106,66,4896,13,2445,49,231

Hindalco Industries Ltd Shareholding Pattern Chart

No. of Hindalco Industries Ltd Shareholders

Hindalco Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF27,108,7680.81245.65
SBI Equity Hybrid Fund24,000,0001.861102.8
SBI Blue Chip Fund12,983,8051.55596.61
ICICI Prudential Bluechip Fund10,588,2371.18486.53
ICICI Prudential Equity & Debt Fund9,308,5851.63427.73
ICICI Prudential Balanced Advantage Fund9,007,7280.83413.91
SBI Multicap Fund9,000,0003.19413.55
Kotak Flexicap Fund - Regular Plan7,500,0000.88344.63
SBI Flexi Cap Fund7,363,3241.93338.34
SBI Long Term Equity Fund6,700,0001.95307.87

Hindalco Industries Ltd ROCE Trend

Hindalco Industries Ltd EPS Trend

Hindalco Industries Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)45.4261.7315.6616.9424.67
Diluted EPS (Rs.)45.3661.6515.6516.9324.66
Cash EPS (Rs.)77.3692.1345.5239.8846.19
Book Value[Excl.RevalReserv]/Share (Rs.)427.09352.24299.73262.72258.59
Book Value[Incl.RevalReserv]/Share (Rs.)427.09352.24299.73262.72258.59
Revenue From Operations / Share (Rs.)1005.41878.64594.53532.18587.00
PBDIT / Share (Rs.)107.76132.8184.5069.7874.81
PBIT / Share (Rs.)75.84102.5054.6446.8553.33
PBT / Share (Rs.)59.6088.1435.5926.6736.34
Net Profit / Share (Rs.)45.4461.8215.6716.9524.71
NP After MI And SOA / Share (Rs.)45.4861.8515.6916.9724.71
PBDIT Margin (%)10.7115.1114.2113.1112.74
PBIT Margin (%)7.5411.669.198.809.08
PBT Margin (%)5.9210.035.985.016.19
Net Profit Margin (%)4.517.032.633.184.20
NP After MI And SOA Margin (%)4.527.032.633.184.20
Return on Networth / Equity (%)10.6517.565.236.459.55
Return on Capital Employeed (%)10.2415.608.597.869.97
Return On Assets (%)4.496.151.832.223.60
Long Term Debt / Equity (X)0.540.660.881.000.83
Total Debt / Equity (X)0.610.800.971.150.90
Asset Turnover Ratio (%)0.480.460.330.340.39
Current Ratio (X)1.481.281.391.781.60
Quick Ratio (X)0.760.690.761.180.94
Inventory Turnover Ratio (X)1.771.891.721.772.07
Dividend Payout Ratio (NP) (%)8.814.856.377.084.90
Dividend Payout Ratio (CP) (%)5.173.262.193.012.62
Earning Retention Ratio (%)91.1995.1593.6392.9295.10
Cash Earning Retention Ratio (%)94.8396.7497.8196.9997.38
Interest Coverage Ratio (X)6.567.825.023.694.40
Interest Coverage Ratio (Post Tax) (X)3.764.612.521.962.45
Enterprise Value (Cr.)132943.50172305.20128775.7066771.3088148.05
EV / Net Operating Revenue (X)0.590.880.970.560.67
EV / EBITDA (X)5.565.846.874.315.30
MarketCap / Net Operating Revenue (X)0.400.640.540.170.34
Retention Ratios (%)91.1895.1493.6292.9195.09
Price / BV (X)0.941.621.090.360.79
Price / Net Operating Revenue (X)0.400.640.540.170.34
EarningsYield0.110.100.040.170.12

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: ₹843.36

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: 24.57% compared to the current price ₹677

Intrinsic Value: ₹990.52

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: 46.31% compared to the current price ₹677

Last 5 Year EPS CAGR: 17.45%

*Investments are subject to market risks

Strength and Weakness of Hindalco Industries Ltd Stock

StrengthWeakness
  1. The company has shown consistent growth in sales (129.00 cr) and profit (16.77 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 30.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 48.83, which may not be favorable.
  4. 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 ₹843.36.

What is the Market Cap of Hindalco Industries Ltd?

The Market Cap of Hindalco Industries Ltd is 1,52,158 Cr..

What is the current Stock Price of Hindalco Industries Ltd as on 30 May 2024?

The current stock price of Hindalco Industries Ltd as on 30 May 2024 is ₹677.

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 699/398.

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

The Stock P/E of Hindalco Industries Ltd is 16.2.

What is the Book Value of Hindalco Industries Ltd?

The Book Value of Hindalco Industries Ltd is 443.

What is the Dividend Yield of Hindalco Industries Ltd?

The Dividend Yield of Hindalco Industries Ltd is 0.44 %.

What is the ROCE of Hindalco Industries Ltd?

The ROCE of Hindalco Industries Ltd is 11.3 %.

What is the ROE of Hindalco Industries Ltd?

The ROE of Hindalco Industries Ltd is 11.7 %.

What is the Face Value of Hindalco Industries Ltd?

The Face Value of Hindalco Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

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