Earnings Update: Here's Why Analysts Just Lifted Their Hindalco Industries Limited (NSE:HINDALCO) Price Target To ₹729

Hindalco Industries Limited (NSE:HINDALCO) defied analyst predictions to release its yearly results, which were ahead of market expectations. The company beat expectations with revenues of ₹2.2t arriving 2.1% ahead of forecasts. Statutory earnings per share (EPS) were ₹45.65, 2.7% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hindalco Industries after the latest results.

Check out our latest analysis for Hindalco Industries

After the latest results, the 22 analysts covering Hindalco Industries are now predicting revenues of ₹2.33t in 2025. If met, this would reflect a satisfactory 7.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 35% to ₹61.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹2.23t and earnings per share (EPS) of ₹55.35 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to ₹729per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Hindalco Industries at ₹830 per share, while the most bearish prices it at ₹485. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Hindalco Industries' revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2025 being well below the historical 16% 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 9.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hindalco Industries is also expected to grow slower than other industry participants.

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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hindalco Industries going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Hindalco Industries you should know about.

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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.