Analysts Are Updating Their Hindalco Industries Limited (NSE:HINDALCO) Estimates After Its Second-Quarter Results

There's been a notable change in appetite for Hindalco Industries Limited (NSE:HINDALCO) shares in the week since its quarterly report, with the stock down 12% to ₹627. It was a workmanlike result, with revenues of ₹582b coming in 4.1% ahead of expectations, and statutory earnings per share of ₹45.65, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Hindalco Industries

After the latest results, the 25 analysts covering Hindalco Industries are now predicting revenues of ₹2.34t in 2025. If met, this would reflect a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.8% to ₹61.75. In the lead-up to this report, the analysts had been modelling revenues of ₹2.29t and earnings per share (EPS) of ₹58.69 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹754, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Hindalco Industries at ₹905 per share, while the most bearish prices it at ₹600. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hindalco Industries' past performance and to peers in the same industry. We would highlight that Hindalco Industries' revenue growth is expected to slow, with the forecast 9.5% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Hindalco Industries.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Hindalco Industries following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at ₹754, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hindalco Industries analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Hindalco Industries that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.