Key Highlight
Hindalco shows recent price weakness despite strong annual returns and expansion news, while facing a high P/B valuation and mixed analyst sentiment.
Snapshot
Summary
Hindalco experienced a slight dip of 1.45% in early trading today, despite its strong performance over the past year with returns of 74.52% and 24.26% year-to-date, significantly outperforming the Nifty 50.
The company announced the launch of a new flagship centre in Delhi and a Bilaspur facility capable of producing 250,000 sq ft of windows monthly, indicating expansion in its operational capabilities.
Analysts maintain a mixed outlook, with the majority holding a 'Hold' rating (13 analysts), while 11 analysts recommend 'Buy' or 'Strong Buy', and 6 recommend 'Sell' or 'Strong Sell', showing a stable distribution over the past month.
Institutional investors, including FIIs and DIIs, collectively hold over 51% of the company's stake. Notably, FIIs increased their holdings by 1.8% while DIIs reduced theirs by 1.82% this quarter, suggesting a shift in institutional strategy.
Fundamentally, while revenue grew sequentially by 17.456% and profit by 26.745% quarter-over-quarter, the year-over-year performance shows a significant decline in net profit (-50.852%) and EPS (-50.829%), despite a revenue increase of 20.408%.
Latest News
- Hindalco shares slip 1.45% at early trade
- FPI exodus from financials cools, but foreign investors remain net sellers
- IIFL Capital's GV Giri sees biggest upside in financials, bullish on metals and internet stocks
- Hindalco slips 1.45% at early trade - BusinessLine
- Top stocks in news: Rajesh Exports, RIL, Hindalco, Auro Pharma, IndiGo, HDFC AMC, Ola, Lupin - MSN
Price & Volume
Short-term returns show a negative trend over the last 1 and 5 days (-2.65% and -2.74% respectively), contrasting with a positive 1-month return of 4.78%.
The stock is trading above its 50-day EMA (1046.75) but below its 9-day EMA (1117.9), indicating a mixed short-term trend.
Momentum indicators suggest a neutral stance, with RSI at 52.56 and MACD showing a bearish crossover.
Volatility is moderate, with the price currently positioned around 48.31% of the Bollinger Band width.
The stock is trading 5.08% below its 52-week high and has experienced a current drawdown of -5.08%.
Technicals
The market behaviour indicates a mixed short-term trend. While the stock has seen positive returns over the past month, recent daily and weekly returns have been negative. The EMAs suggest a neutral to slightly bearish short-term outlook, with the price below the shorter-term EMA. Momentum is neutral to bearish, as indicated by the RSI and MACD. Volatility is within normal ranges, and the stock is positioned below its 52-week high, with a moderate drawdown. Volume conviction is not a dominant theme in the current data.
Fundamentals
Revenue grew by 20.408% YoY to ₹78,133 Cr in Mar 2026.
Net profit decreased by 50.852% YoY to ₹2,597 Cr, while EPS fell by 50.829% YoY to ₹11.56.
Quarter-over-quarter, revenue increased by 17.456%, net profit by 26.745%, and EPS by 26.754%.
The current P/B ratio of 3.3 is at the 98.413th percentile of its 6-month range.
Events
Hindalco has launched a new flagship centre in Delhi and will have a Bilaspur facility producing 250,000 sq ft of windows monthly. The company also published a newspaper advertisement regarding the transfer of equity shares to IEPF and announced its participation in investor conferences scheduled for June 1, 2, 4, and 8, 2026.