Hindalco Industries Limited

NSEI:HINDALCO Stock Report

Market Cap: ₹1.5t

Hindalco Industries Valuation

Is HINDALCO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HINDALCO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HINDALCO (₹661.1) is trading above our estimate of fair value (₹241.54)

Significantly Below Fair Value: HINDALCO is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HINDALCO?

Key metric: As HINDALCO is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HINDALCO. This is calculated by dividing HINDALCO's market cap by their current earnings.
What is HINDALCO's PE Ratio?
PE Ratio11.8x
Earnings₹124.88b
Market Cap₹1.47t

Price to Earnings Ratio vs Peers

How does HINDALCO's PE Ratio compare to its peers?

The above table shows the PE ratio for HINDALCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29x
NATIONALUM National Aluminium
14.6x13.9%₹452.3b
VEDL Vedanta
15.3x24.3%₹1.7t
500470 Tata Steel
61.8x60.5%₹1.8t
500188 Hindustan Zinc
24.2x13.8%₹2.1t
HINDALCO Hindalco Industries
11.8x6.6%₹1.5t

Price-To-Earnings vs Peers: HINDALCO is good value based on its Price-To-Earnings Ratio (11.8x) compared to the peer average (29x).

Price to Earnings Ratio vs Industry

How does HINDALCO's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

7 CompaniesPrice / EarningsEstimated GrowthMarket Cap
590078 Maithan Alloys
3.7xn/aUS$365.56m
526608 Electrotherm (India)
3xn/aUS$134.79m
522165 Indsil Hydro Power and Manganese
1.6xn/aUS$16.39m
531144 El Forge
1xn/aUS$8.21m
HINDALCO 11.8xIndustry Avg. 24.6xNo. of Companies28PE01632486480+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HINDALCO is good value based on its Price-To-Earnings Ratio (11.8x) compared to the Indian Metals and Mining industry average (24.6x).

Price to Earnings Ratio vs Fair Ratio

What is HINDALCO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HINDALCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.8x
Fair PE Ratio31.3x

Price-To-Earnings vs Fair Ratio: HINDALCO is good value based on its Price-To-Earnings Ratio (11.8x) compared to the estimated Fair Price-To-Earnings Ratio (31.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HINDALCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹661.10
₹750.96
+13.6%
9.0%₹905.00₹600.00n/a26
Nov ’25₹690.90
₹762.96
+10.4%
10.0%₹905.00₹625.00n/a26
Oct ’25₹761.55
₹749.16
-1.6%
8.5%₹905.00₹625.00n/a25
Sep ’25₹701.35
₹742.64
+5.9%
9.5%₹905.00₹597.00n/a25
Aug ’25₹673.50
₹761.56
+13.1%
9.2%₹905.00₹597.00n/a25
Jul ’25₹689.85
₹748.67
+8.5%
9.8%₹850.00₹560.00n/a24
Jun ’25₹689.35
₹731.78
+6.2%
11.8%₹835.00₹485.00n/a23
May ’25₹644.40
₹622.48
-3.4%
11.2%₹780.00₹485.00n/a23
Apr ’25₹568.60
₹578.27
+1.7%
6.8%₹635.00₹485.00n/a22
Mar ’25₹519.10
₹572.00
+10.2%
7.4%₹635.00₹485.00n/a22
Feb ’25₹571.25
₹591.64
+3.6%
12.5%₹760.00₹485.00n/a22
Jan ’25₹610.40
₹566.45
-7.2%
8.6%₹725.00₹485.00n/a22
Dec ’24₹517.20
₹557.58
+7.8%
6.7%₹625.00₹485.00n/a24
Nov ’24₹462.70
₹543.64
+17.5%
7.2%₹625.00₹485.00₹690.9025
Oct ’24₹492.65
₹534.28
+8.5%
8.0%₹625.00₹470.00₹761.5525
Sep ’24₹473.25
₹533.82
+12.8%
7.9%₹625.00₹470.00₹701.3522
Aug ’24₹464.10
₹521.65
+12.4%
11.0%₹657.00₹425.00₹673.5020
Jul ’24₹420.95
₹520.15
+23.6%
11.0%₹657.00₹425.00₹689.8520
Jun ’24₹406.35
₹520.15
+28.0%
11.0%₹657.00₹425.00₹689.3520
May ’24₹436.10
₹522.55
+19.8%
10.0%₹637.00₹450.00₹644.4020
Apr ’24₹405.35
₹529.20
+30.6%
9.9%₹657.00₹436.00₹568.6020
Mar ’24₹413.05
₹533.29
+29.1%
9.7%₹657.00₹436.00₹519.1021
Feb ’24₹467.85
₹531.76
+13.7%
10.6%₹657.00₹429.00₹571.2521
Jan ’24₹473.35
₹524.38
+10.8%
10.0%₹657.00₹429.00₹610.4021
Dec ’23₹463.40
₹510.35
+10.1%
11.1%₹657.00₹390.00₹517.2020
Nov ’23₹414.40
₹514.95
+24.3%
13.9%₹657.00₹345.00₹462.7021

Analyst Forecast: Target price is less than 20% higher than the current share price.

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