Hindalco Industries Ltd.
Metals · NSE
52-week range
₹599 – ₹1,080
From 52w high
-3.3%
RSI (14)
58.7
vs SMA 50 / 200
↑ 50 · ↑ 200
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.
- ✓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.
- ✗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.
- ·In April 2026, Kotak cited in Moneycontrol downgraded HINDALCO to a reduce action, naming Vedanta as a preferred pick on the view that aluminium prices would remain elevated for longer — indicating differentiated broker views within the sector.
- ·In the same month, a Business Standard note reported five consecutive sessions of gains, and an Economic Times article flagged a weekly-chart range breakout accompanied by a move to record highs in April 2026.
- ·News flow is thin (4 items) and mixed — one positive (price action/breakout), two neutral (price streak, broker comparison), and one negative (broker downgrade) — making it difficult to draw a directional sentiment conclusion from the recent news alone.
- ?Does the 5-year earnings CAGR of -45.1% reflect cyclical commodity-price troughs and one-time charges, or is there a structural margin problem that the forward PE of 11.87 has not fully accounted for?
- ?Given a debt-to-equity of 57.571, how does the interest coverage ratio trend over the past three years, and what commodity price level would cause it to fall below 1x?
- ?The price has outperformed earnings materially over one year — is the re-rating driven by Novelis (the US aluminium subsidiary) earnings recovery, improving aluminium LME prices, or multiple expansion unanchored to fundamentals?
- ?With nearest resistance at ₹1,080 and support at ₹894–897.5, how has HINDALCO historically behaved after prior range breakouts in terms of follow-through versus mean reversion?
PE
14.5
Forward PE
11.9
ROE
—
Profit margin
+6.1%
D/E
57.57
Dividend yield
+0.5%
Quality score
38/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.