HINDALCO LTD
Incorporated in 1958, Hindalco Industries Ltd. is a flagship company of the Aditya Birla Group. The Co and its subsidiaries are primarily engaged in the production of Aluminium and Copper. It is also
engaged in the manufacturing of aluminium sheet, extrusion and light gauge products for use in packaging markets like beverage and food, can and foil products, etc.
Revenue Breakup
Novelis- 59%
Copper – 23%
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales | 195,059 | 223,202 | 215,962 |
| Sales Growth % | 47.76% | 14.43% | -3.24% |
| Expenses | 166,712 | 200,536 | 192,090 |
| Operating Profit | 28,347 | 22,666 | 23,872 |
| OPM % | 15% | 10% | 11% |
| Net Profit | 13,730 | 10,097 | 10,155 |
| EPS in Rs | 61.10 | 44.93 | 45.19 |
Synopsis of Financials
- Consolidated EBITDA increased by 28% year-on-year to ₹8,100 crores.
- Consolidated net profit after tax surged 60% year-on-year to ₹3,735 crores.
- Indian aluminum business reported EBITDA growth of 69% year-on-year at ₹4,776 crores, with net profit after tax up by 134% to ₹2,885 crores.
- Novelis shipments were down 1% year-on-year at 904 Kt, with EBITDA down 19% year-on-year to $367 million due to high aluminum scrap prices.
Final Outlook
- Tsr Value Index – Good Score of 70.83.
- Undervalued – Price to Intrinsic Value of 0.558.
- Price to Earning Ratio is 10.57 and EV to EBITDA is 6.10 suggesting company is undervalued.
- Tremendous increasing in Book Value last 3 year.
- Earning Yield of 9.46 %.
- Good Return on Equity of 12.81% is achieved by the company.
- Quarterly sales in last 5 years is trending up.
- Steady increase in Total Assets for last 3 Years.
- Debt to equity ratio has decreased and is lowest in last five years.
I would give Buy Recommendation for this stock.
Hindalco-Ltd