Hindalco Industries Ltd.
ISIN: INE038A01020 • Market Cap: ₹2.33 Lakh Cr
The 5-Pillar Quality Audit for Hindalco Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (13.8%), Return on Capital Employed (12.7%), and equity compounding (9.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.71 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (11.0%) and 3Y PAT CAGR (17.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 14.19 vs PEG of 0.68 and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 34.7%, backed by 51.5% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 14.19)
Trading at a P/E multiple of 14.19, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (51.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 51.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Metals & Mining)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Metals & Mining space.
Quantitative Strategy Eligibility
Checking HINDALCO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 71/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Metals & Mining Sector Peer Comparison
Compare HINDALCO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Hindalco Industries Ltd. (HINDALCO)Current | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | — |
| Adani Enterprises Ltd. (ADANIENT) | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | View |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
| Jindal Steel Ltd. (JINDALSTEL) | 58/100 | ₹1.14 Lakh Cr | 41.77 | 8.8% | 0.43 | View |
Frequently Asked Questions: Hindalco Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Hindalco Industries Ltd. (HINDALCO)?
Hindalco Industries Ltd. has a RupeeTools Fundamental Score of 71/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (72/100), Growth (70/100), Valuation (95/100), and Ownership Quality (72/100).
Q:Is HINDALCO fundamentally strong for long-term investment?
Yes, HINDALCO exhibits solid fundamental strength with a 71/100 score, driven by a return on equity of 9.8% and a debt-to-equity ratio of 0.71.
Q:Does HINDALCO pass the Coffee Can Investing filter?
No. HINDALCO does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does HINDALCO compare against other Metals & Mining peers?
Within India's Metals & Mining sector, HINDALCO trades at a P/E of 14.19 and generates an ROCE of 12.7%. Compare its 5-Pillar score of 71/100 against top sector peers like Adani Enterprises Ltd. (58/100), JSW Steel Ltd. (73/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.