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Last Updated on: 27 February, 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

Hindalco Industries Ltd. Share Price Update

Share PriceValue
Today₹502.10
Previous Day₹582.35

Basic Stock Data of Hindalco Industries Ltd

Market Cap 1,16,484 Cr.
Current Price 518
High / Low621/381
Stock P/E12.4
Book Value 443
Dividend Yield0.58 %
ROCE11.3 %
ROE11.7 %
Face Value 1.00

Data Source: screener.in

Hindalco Industries Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales31,23734,95840,50741,35847,66550,27255,76458,01856,17653,15155,85752,99154,169
Expenses27,88529,90434,86935,65240,10742,96048,46049,58950,81449,60350,53047,27748,557
Operating Profit3,3525,0545,6385,7067,5587,3127,3048,4295,3623,5485,3275,7145,612
OPM %11%14%14%14%16%15%13%15%10%7%10%11%10%
Other Income36214722384540543634255330368354381496
Interest9828619038201,2918528058478799349869921,034
Depreciation1,7081,6551,7211,6451,6401,6831,7611,7491,7131,7681,8561,7861,843
Profit before tax1,0242,6853,2374,0865,0325,2134,7726,0883,1001,2142,8393,3173,231
Tax %62%30%40%32%32%30%19%32%29%-12%15%26%32%
Net Profit3871,8771,9282,7873,4173,6753,8514,1192,2051,3622,4112,4542,196
EPS in Rs1.728.358.5812.4015.2116.3517.1418.339.816.0610.7310.929.77

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:11%
5 Years:14%
3 Years:24%
TTM:-3%
Compounded Profit Growth
10 Years:14%
5 Years:16%
3 Years:38%
TTM:-20%
Stock Price CAGR
10 Years:18%
5 Years:21%
3 Years:17%
1 Year:19%
Return on Equity
10 Years:8%
5 Years:11%
3 Years:12%
Last Year:12%

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 ETF271087680.81245.65
SBI Equity Hybrid Fund240000001.861102.8
SBI Blue Chip Fund129838051.55596.61
ICICI Prudential Bluechip Fund105882371.18486.53
ICICI Prudential Equity & Debt Fund93085851.63427.73
ICICI Prudential Balanced Advantage Fund90077280.83413.91
SBI Multicap Fund90000003.19413.55
Kotak Flexicap Fund - Regular Plan75000000.88344.63
SBI Flexi Cap Fund73633241.93338.34
SBI Long Term Equity Fund67000001.95307.87

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 of Hindalco Industries Ltd Stock

Fair Value: ₹646.43

The stock is undervalued by 24.79% compared to the current price ₹518

*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 is trading at a high valuation with an average P/B ratio of 66.63 and average Dividend Yield of 9.25%.
  2. The stock has a low average ROCE of 8.83%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 30.50, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 48.83, which may not be favorable.
  5. The company has higher borrowings (60,446.38) compared to reserves (56,821.08), which may suggest financial risk.

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