HINDALCO vs VEDL
Side-by-side comparison of Hindalco Industries Ltd. and Vedanta Ltd.. Descriptive only — not investment advice.
Hindalco Industries Ltd.
Metals
Quality Score: 38/100
Vedanta Ltd.
Metals
Quality Score: 52/100
At a glance
| Metric | HINDALCO | VEDL |
|---|---|---|
| Quality Score | 38/100 | 52/100 |
| P/E (trailing) | 16.8 | 18.8 |
| Forward P/E | 9.4 | 13.5 |
| ROE | +10.3% | +20.4% |
| Profit margin | +4.9% | +22.7% |
| Debt-to-equity | 72.60 | 48.04 |
| Dividend yield | +0.50% | +9.64% |
| 1Y price return | +58.5% | -19.2% |
| From 52w high | -14.1% | -57.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.72 | 1.86 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Hindalco Industries (₹1,010) is a large-cap aluminium and copper producer trading above its 200-DMA (₹906.51) but 4.9% below its 50-DMA (₹1,059.50), up 58.6% over the past year and 14.1% off its 52-week high. Trailing PE stands at 16.85 against a forward PE of 9.39, while profit margin is 4.87% and debt-to-equity is 72.6 with a rising debt trend. ROE of 10.29% has never cleared 15% in any tracked year and ranks 5th of 6 in the Metals peer group.
Vedanta Ltd (VEDL) is a diversified natural-resources company in the Metals sector, currently trading at Rs 337.15 — 57.6% below its 52-week high, a decline partly attributable to the company's demerger ex-date in April 2026 which mechanically reset the quoted price. Trailing PE stands at 18.8x against a forward PE of 13.5x, dividend yield of 9.6%, and an exceptionally elevated debt-to-equity ratio of 48.04, making the capital structure the dominant variable in any assessment of the business.
Pros
- ✓Revenue compounded at 20.4% over 5 years, indicating consistent top-line scale expansion across the business cycle.
- ✓Price is up 58.6% over 1 year and sits 10.9% above the 200-DMA (₹906.51), reflecting a sustained medium-term price recovery from prior lows.
- ✓Forward PE of 9.39 represents a 44% discount to trailing PE of 16.85, suggesting the market is pricing in a material improvement in earnings relative to the trailing period.
- ✓FCF was positive in 3 of 5 tracked years, indicating that the business generates cash in most operating environments despite elevated leverage.
- ✓ROE of 20.4% is the third-highest among six sector peers, above Hindalco (10.3%), Tata Steel (11.2%), and Adani Enterprises (13.7%), though well below Hindustan Zinc (76.9%) and JSW Steel (27.3%).
- ✓Free cash flow was positive in 4 of the tracked historical years, and the debt trend is classified as falling — the combination suggests some capacity to service and reduce leverage over time.
- ✓Forward PE of 13.5x is 28% below the trailing PE of 18.8x, indicating that analyst earnings estimates embed a meaningful step-up in profitability relative to the trailing period.
- ✓Quality score of 56 ranks 2nd of 6 sector peers on the available data, above Adani Enterprises (22), Hindalco (31), Tata Steel (42), and JSW Steel (45), though below Hindustan Zinc (72).
Cons
- ✗5-year earnings CAGR of -50.9% demonstrates persistent bottom-line deterioration even as revenues grew at 20.4% over the same period, pointing to cost, margin, or non-operating headwinds compounding over time.
- ✗Debt-to-equity of 72.6 with a rising debt trend and a 4.87% net profit margin creates a narrow buffer; the consistency score of 26 and quality score of 31 both rank near the bottom of the tracked universe.
- ✗Q4 net profit fell 51% YoY and LME aluminium price slides drove a subsequent 4%+ intraday share decline in June 2026, reinforcing commodity-price sensitivity on an already thin margin base.
- ✗ROE of 10.29% ranks 5th of 6 in the Metals peer group and has not crossed 15% in any year on record, indicating return generation lags sector peers with stronger capital efficiency (HINDZINC at 76.94%, JSWSTEEL at 27.26%).
- ✗Debt-to-equity ratio of 48.04 is structurally extreme for a Metals-sector company; all visible peers carry D/E well below 2, meaning Vedanta carries leverage an order of magnitude above the sector norm.
- ✗Five-year revenue growth of -41.3% represents significant top-line contraction even as earnings expanded 92.2% — the divergence raises questions about the composition and durability of reported earnings in a commodity business.
- ✗ROE exceeded 15% in only 3 of the tracked historical years and the consistency score stands at 61, signalling that capital returns have been uneven across commodity cycles.
- ✗RSI of 33.8 and a price 37% below the 50-DMA (Rs 533.62) and 38% below the 200-DMA (Rs 543.78) reflect a stock well outside both near-term and long-term moving average bands; nearest resistance is Rs 340.65, just above the current price.
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