Hindalco Inds. (HINDALCO)

FairStock Score: 78/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham's glasses and Buffett's patience. Hindalco at ₹1,029.50 with ₹2.29 lakh Cr market cap is a large aluminium cyclical, not a consumer franchise. The numbers show a business earning ROE 11.92% and ROCE 14.80%, respectable but not a wide moat. Piotroski F-Score 7/9 suggests improving fundamentals, and 5-year revenue CAGR of 15.08% with latest quarter sales ₹66,521 Cr and net profit ₹2,049 Cr indicates scale and cyclical recovery. Profit growth of 156.93% is impressive, but commodity profits can swing, so I treat it as cyclical, not durable. The 52W range shows the market has already recognized improvement, so I prefer a larger discount for commodity volatility. Balance sheet: debt/equity 0.73 and current ratio 1.27 are manageable but not fortress-like. Free cash flow is negative ₹199 Cr, and dividend yield 0.49% is thin. Altman Z-Score 2.57 sits in the grey zone, so I want more margin of safety. Valuation: P/E 13.97, P/B 1.67, book value ₹615.28. Graham Number ₹982.93 gives only 5.92% margin of safety, below my comfort. PEG 0.86 looks cheap if growth persists, but EV/EBITDA 228.36 warns that earnings quality or EBITDA may be distorted. Promoter holding 34.65% aligns some interests but not control. At ₹1,029.50, near the upper half of 52W range ₹754.45-₹1,176, I'd call it a fair-to-slightly-cheap cyclical, not a bargain. FairStock 78/100 STEADY fits. I'd watch FCF, debt, and aluminium spreads before buying.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer