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: 46/100
Vedanta Ltd.
Metals
Quality Score: 53/100
At a glance
| Metric | HINDALCO | VEDL |
|---|---|---|
| Quality Score | 46/100 | 53/100 |
| P/E (trailing) | 14.5 | 16.5 |
| Forward P/E | 11.9 | 11.9 |
| ROE | — | +20.4% |
| Profit margin | +6.1% | +22.7% |
| Debt-to-equity | 57.57 | 48.04 |
| Dividend yield | +0.48% | +11.47% |
| 1Y price return | +67.0% | -23.6% |
| From 52w high | -3.3% | -62.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.54 | 1.86 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
HINDALCO Industries trades at ₹1,044.4, up 66.98% over the past year and within 3.3% of its 52-week high, with price above both the 50-DMA (₹968.52) and 200-DMA (₹848.73). The trailing PE of 14.45 is the lowest among available Metals peers (TATASTEEL 29.16, JSWSTEEL 41.99, ADANIENT 33.96), while a debt-to-equity of 57.571 and a 5-year earnings CAGR of -45.1% flag structural concerns beneath the price momentum. A forward PE of 11.87 implies the market is pricing in an earnings recovery not yet visible in the historical record.
Vedanta Ltd. (VEDL) is a diversified metals and natural-resources conglomerate listed on the NSE, currently priced at ₹296.6 after a corporate demerger that took effect on 30 April 2026 adjusted the ex-date share price. The 62.69% drawdown from the 52-week high and 53.98% decline over 3 months are primarily a consequence of that structural corporate event rather than purely market-driven selling. The stock carries a debt-to-equity ratio of 48.04, a trailing PE of 16.5, and a trailing dividend yield of 11.47%.
Pros
- ✓Lowest PE in the Metals peer group at 14.45 (vs TATASTEEL 29.16, JSWSTEEL 41.99, ADANIENT 33.96), and forward PE of 11.87 suggests the valuation embeds limited optimism relative to peers.
- ✓Price is above both the 50-DMA (₹968.52) and 200-DMA (₹848.73), with RSI at 58.66 in neutral territory — a 52-week drawdown of only -3.3% indicates the stock has sustained its recent advance without a sharp reversal.
- ✓5-year revenue CAGR of 13.9% demonstrates top-line scale expansion, with FCF positive in 4 of available years showing the business has generated cash in most periods despite its leverage.
- ✓Analyst mean rating of 2.53 across 27 analysts (1–5 scale, lower = more constructive) reflects a mix of views across a reasonable coverage base for the sector.
- ✓ROE of 20.4% ranks first among the 5 reportable sector peers in the Metals sector, and the quality score of 59 ranks highest in the peer group (ranked 1st of 6 on available data).
- ✓Dividend yield of 11.47% is the highest observable yield figure in the peer set; FCF was positive in 4 of the available persistence years with a falling debt trend reported.
- ✓5-year earnings growth of +92.2% demonstrates that net profitability expanded sharply even as revenue contracted, indicating significant margin improvement over the period.
- ✓Trailing PE of 16.5 (2nd lowest among peers with valid PE) and forward PE of 11.9 reflect a valuation compressed relative to JSW Steel (PE 42.0) and Tata Steel (PE 29.0).
Cons
- ✗5-year earnings CAGR of -45.1% reflects severe bottom-line erosion relative to revenue growth; profit margin of 6.14% leaves limited buffer against commodity price or cost-side pressure.
- ✗Debt-to-equity of 57.571 is exceptionally elevated for a non-financial industrial; at a profit margin of 6.14%, debt servicing consumes a meaningful share of operating surplus, and a commodity downturn could compress coverage ratios materially.
- ✗ROE has exceeded 15% in only 1 of the years available, and quality score of 38 ranks HINDALCO near the lower end of the Metals peer group — return on capital has not demonstrated sustained strength.
- ✗Nearest resistance sits at ₹1,080 (3.4% above current price of ₹1,044.4); key support cluster is at ₹894–897.5, approximately 14% below current levels, leaving a wider distance to support than to resistance.
- ✗Debt-to-equity of 48.04 is extremely elevated; this level of leverage amplifies downside sensitivity to commodity price cycles, interest rate moves, and revenue shocks.
- ✗5-year revenue growth of -41.3% indicates cumulative top-line contraction; the divergence from the +92.2% earnings growth trajectory raises questions about earnings quality, asset disposals, and the sustainability of the margin base.
- ✗ROE above 15% was observed in only 3 of the available persistence years (consistencyScore 61), suggesting that the current 20.4% ROE is not uniformly maintained across cycles.
- ✗Price is below both the 50-DMA (₹643.06) and 200-DMA (₹549.96); while the demerger event is the primary mechanical driver of this gap, the post-demerger price of ₹296.6 relative to these pre-demerger averages means the moving-average signals will remain distorted until the averages reprice to post-demerger levels.
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