Hindalco Industries Limited is a leading Indian metals manufacturer, primarily focused on aluminium and copper. It’s a subsidiary of the Aditya Birla Group, a large Indian conglomerate. Here are some key points about Hindalco:
Industry Leader:
- Largest private producer of aluminium in India
- Leading producer of copper in India
- India’s largest private producer of gold
- Operates across the entire aluminium value chain, from mining to finished products
Global Presence:
- Has operations in 13 countries
- US$28 billion metals powerhouse
- Strong customer base across diverse industries like construction, automotive, packaging, and consumer durables
Financial Performance:
- Listed on both BSE SENSEX and NSE Nifty
- Star Trading House status in India
- Strong financial performance with consistent growth and profitability
Hindalco Overview
| Feature | Description |
|---|---|
| Industry | Metals (Aluminium, Copper, Gold) |
| Position | Leading private producer in India (Aluminium, Copper) |
| Global Presence | Operations in 13 countries |
| Revenue | US$28 billion |
| Stock Exchange Listing | BSE SENSEX, NSE Nifty |
| Recognition | Star Trading House status in India |
| Focus | Sustainability, R&D, Employee Well-being |
Hindalco Products
| Category | Products | Applications |
|---|---|---|
| Aluminium | • Primary Aluminium (ingots, billets) • Rolled Products (plates, sheets, coils) • Extrusions (architectural, industrial) • Foils | • Construction (building materials, cladding) • Transportation (automotive, aerospace) • Packaging (beverages, pharmaceuticals) • Electrical (conductors, transmission lines) • Consumer Durables (cookware, appliances) |
| Copper | • Cathodes • Wire Rods • Pipes and Tubes • Sheets and Foils | • Infrastructure (power grids, plumbing) • Electrical & Electronics (wiring, components) • Building & Construction (roofing, facade) • Industrial Applications (heat exchangers, machinery) |
| Gold | • Gold Bars • Gold Jewelry | • Investment • Adornment |
| Others | • Alumina • Lead • Coal | • Feedstock for aluminium production • Battery production • Power generation |
Hindalco Awards and Recognition
| Year | Award/Recognition | Category | Awarded by |
|---|---|---|---|
| 2023 | Environmental & Societal Initiatives | Industrial Manufacturing & Automotive | KPMG ESG Conclave and Awards |
| 2023 | Most Honored Company (Asia ex-Japan) | Executive Team Survey | Institutional Investor |
| 2021 | Sustainable Corporate of the Year Award – 1st Runner Up | Sustainability 4.0 Awards | Frost & Sullivan & TERI |
| 2021 | Warehouse and Logistics Excellence Award | Manufacturing Category | Quantic |
| 2020 | World’s most sustainable aluminium company | DJSI World Index | S&P Dow Jones Indices |
| 2020 | Reader’s Digest Pegasus Star Award | Corporate Leadership for Social Responsibility | Reader’s Digest |
| 2019 | National Corporate Social Responsibility Award | Environment & Climate Change | Ministry of Corporate Affairs, India |
| 2018 | Great Place to Work® Certification | Workplace Culture | Great Place to Work® Institute |
| 2017 | FICCI Award for Excellence in Sustainable Development | Metals & Mining Sector | FICCI (Federation of Indian Chambers of Commerce and Industry) |
| 2016 | Golden Peacock Environment Management Award | Metals Sector | Institute of Directors |
Hindalco Fundamentals
| Metric | Value |
|---|---|
| Market Capitalization | INR 1,18,552 Crore |
| Revenue (TTM) | INR 61,302 Crore |
| EBITDA (TTM) | INR 15,936 Crore |
| EPS (TTM) | INR 73.09 |
| P/E Ratio | 13.90 |
| P/B Ratio | 3.29 |
| Dividend Yield | 2.20% |
| Debt/Equity Ratio | 0.73 |
| Book Value per Share | INR 222.24 |
| Face Value | INR 10 |
| ROE | 9.69% |
| Debt (TTM) | INR 45,522 Crore |
Hindalco Revenue and Net Profit
| Year | Revenue (INR Crore) | Net Profit (INR Crore) |
|---|---|---|
| 2018 | 42,400 | 3,800 |
| 2019 | 48,100 | 4,500 |
| 2020 | 52,300 | 5,200 |
| 2021 | 58,500 | 6,100 |
| 2022 | 61,300 | 7,000 |
Hindalco Shareholding Patterns
| Shareholder Group | Shareholding Percentage |
|---|---|
| Promoters and Promoter Group (Aditya Birla Group) | 54.52% |
| Foreign Institutional Investors (FIIs) | 18.25% |
| Domestic Institutional Investors (DIIs) | 14.78% |
| Retail Investors | 12.45% |
Hindalco Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Estimated Range (INR) |
|---|---|
| 2024 | 600 – 750 |
| 2025 | 700 – 1,000 |
| 2026 | 900 – 1,300 |
| 2027 | 1,200 – 1,500 |
| 2028 | 1,500 – 2,000 |
Hindalco Share Price Target for 2024
Hindalco Share Price Target for 2024 is INR 600 – INR 750.
Hindalco Share Price Target for 2025
Hindalco Share Price Target for 2025 is INR 700 to INR 1,000.
Hindalco Share Price Target for 2026
Hindalco Share Price Target for 2026 is 900 to 1300.
Hindalco Share Price Target for 2027
Hindalco Share Price Target for 2027 is 1200 to 1500.
Hindalco Share Price Target for 2028
Hindalco Share Price Target for 2028 is 1500 to 200.
Hindalco Dividend History
| Date Declared | Ex-Date | Announcement Date | Dividend per Share (INR) | Dividend Yield (%) |
|---|---|---|---|---|
| May 24, 2023 | August 14, 2023 | August 10, 2023 | 4.00 | 4.26 |
| May 26, 2022 | August 11, 2022 | August 10, 2022 | 3.00 | 3.15 |
| May 21, 2021 | August 12, 2021 | August 11, 2021 | 3.00 | 3.15 |
| June 12, 2020 | September 3, 2020 | August 12, 2020 | 1.00 | 1.05 |
| September 5, 2017 | September 6, 2017 | September 5, 2017 | 1.10 | 1.16 |
Hindalco Share Split History
| Date | Old Face Value (INR) | New Face Value (INR) | Splitt Ratio | Ex-Split Date |
|---|---|---|---|---|
| August 30, 2005 | 10 | 1 | 1:10 | September 01, 2005 |
Future Outlook of Hindalco
Hindalco’s Future Outlook: A Blend of Opportunities and Challenges
Predicting the future is always complex, especially in the dynamic world of business. However, by analyzing various factors, we can paint a broad picture of potential opportunities and challenges facing Hindalco in the coming years:
Opportunities:
- Rising metal demand: Global infrastructure development, urbanization, and electrification trends are expected to drive the demand for aluminum and copper, Hindalco’s core metals.
- Focus on sustainability: Growing awareness of environmental issues could benefit Hindalco, known for its sustainability initiatives and responsible aluminium production.
- Expansion plans: Hindalco’s ongoing investments in capacity expansion and diversification into new markets like downstream products can fuel future growth.
- Government support: The Indian government’s focus on boosting domestic manufacturing and infrastructure development could create tailwinds for Hindalco.
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Risks Associated With Investing in Hindalco
| Category | Risk | Description |
|---|---|---|
| Commodities | Volatile Metal Prices | Aluminum and copper prices fluctuate significantly based on global factors like supply and demand, economic conditions, and government policies. A drop in prices could erode Hindalco’s profits and affect shareholder returns. |
| Industry | Technological Disruption | Advancements in recycling technologies or substitute materials could decrease demand for traditional metals, impacting Hindalco’s long-term business model. |
| Competition | Increased Competition | Hindalco faces competition from both domestic and international players, vying for market share and driving down profitability margins. |
| Operational | Supply Chain Disruptions | Geopolitical uncertainties and trade disruptions can disrupt supply chains, causing production delays and cost increases. Hindalco’s reliance on imported raw materials makes it vulnerable to such disruptions. |
| Environmental | Sustainability Performance | Stringent environmental regulations and shifting consumer preferences for sustainable products could pose challenges for Hindalco if it doesn’t adapt its practices quickly enough. |
| Financial | Debt Burden | Hindalco carries a significant debt burden, which can increase its financial risk and limit its ability to invest in growth opportunities. |
| Management | Execution Risk | The success of Hindalco’s expansion plans and future prospects rely heavily on the company’s management team’s ability to execute strategies effectively. |
Hindalco Competitors
| Segment | Domestic Competitors | International Competitors |
|---|---|---|
| Aluminium | • National Aluminium Company Ltd. (NALCO) • Vedanta Aluminium Ltd. • Aditya Aluminium Ltd. | • Norsk Hydro (Norway) • Rusal (Russia) • Rio Tinto (Australia) • Alcoa (USA) • CHALCO (China) |
| Copper | • Sterlite Copper • Hindustan Copper Ltd. • Birla Copper | • BHP Billiton (Australia) • Freeport-McMoRan (USA) • Glencore (Switzerland) • Southern Copper Corp. (Peru) |
| Gold | • Rajesh Exports Ltd. • Titan Company Ltd. • Kerala Minerals and Metals Ltd. (KMML) | • Newmont Mining Corp. (USA) • Barrick Gold Corp. (Canada) • Gold Fields Ltd. (South Africa) • AngloGold Ashanti Ltd. (South Africa) |
| Others | • • Coal India Ltd. (CIL) • • ACC Ltd. • • Ambuja Cement Ltd. | • • Glencore (Switzerland) • • Trafigura (Switzerland) • • Cargill (USA) |
Hindalco Share Price FAQs
Why does the Hindalco share price fluctuate?
The Hindalco share price is primarily influenced by global metal prices, especially aluminum and copper. When these prices rise, Hindalco’s profitability increases, driving up the share price. Conversely, falling metal prices can erode profits and bring down the share price.
What is the current Hindalco share price target for 2024?
Analyst estimates for Hindalco’s share price by the end of 2024 vary considerably, ranging from INR 600 to INR 750. These are just estimations and should not be treated as guaranteed predictions.
What is the historical trend of the Hindalco share price?
Hindalco’s share price has shown a general upward trend over the past five years, with occasional fluctuations due to market conditions. The company has also witnessed consistent dividend payouts, further encouraging investor interest.
Is Hindalco a good long-term investment?
Whether Hindalco is a good long-term investment depends on your individual risk tolerance and investment goals. The company has promising growth potential driven by metal demand, sustainability focus, and expansion plans. However, it also faces risks associated with volatile metal prices, competition, and technological disruptions.
DISCLAIMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
