Understanding the Current Rating
The Strong Sell rating assigned to Hind Aluminium Industries Ltd indicates a cautious stance for investors, suggesting that the stock currently exhibits significant risks and challenges that outweigh potential rewards. This rating is derived from a comprehensive assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall Mojo Score, which currently stands at 17.0, reflecting a marked decline from the previous score of 33. The rating was revised on 30 June 2025, but the following analysis is based on the latest data as of 26 December 2025.
Quality Assessment: Below Average Fundamentals
As of 26 December 2025, Hind Aluminium Industries Ltd’s quality grade remains below average, primarily due to ongoing operating losses and weak long-term fundamental strength. The company’s ability to service its debt is notably poor, with an average EBIT to interest ratio of -8.44, signalling that earnings before interest and taxes are insufficient to cover interest expenses. This weak coverage ratio raises concerns about financial stability and the company’s capacity to meet its obligations without additional financing or restructuring.
Furthermore, the company has reported negative returns on capital employed (ROCE), a critical indicator of how efficiently capital is being utilised to generate profits. Negative ROCE reflects operational inefficiencies and loss-making activities, which undermine investor confidence in the company’s core business model.
Valuation: Risky and Unfavourable
The valuation grade for Hind Aluminium Industries Ltd is classified as risky. The stock trades at levels that are unfavourable compared to its historical averages, indicating that investors are pricing in significant uncertainty or potential downside. Negative EBITDA further compounds valuation concerns, as earnings before interest, taxes, depreciation, and amortisation are a key measure of operational profitability and cash flow generation.
Despite some short-term price gains—such as a 4.96% increase on the latest trading day and a 13.73% rise over the past month—the stock’s year-to-date return remains negative at -6.38%, and the one-year return is marginally down by -0.20%. These figures suggest that while there may be intermittent rallies, the overall valuation environment remains challenging for the company.
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- - Fundamental Analysis
- - Technical Signals
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Financial Trend: Flat with Signs of Pressure
The financial trend for Hind Aluminium Industries Ltd is currently flat, reflecting stagnation in key performance metrics. The latest quarterly results ending September 2025 show a significant decline in profitability, with the profit after tax (PAT) falling by 64.7% to ₹0.79 crore compared to the previous four-quarter average. This sharp contraction in earnings highlights ongoing operational challenges and cost pressures.
Over the past year, the company’s profits have decreased by 12.4%, underscoring a deteriorating earnings trajectory. Despite some short-term price appreciation, the underlying financial health remains fragile, with no clear signs of recovery or growth momentum.
Technical Outlook: Mildly Bearish
From a technical perspective, the stock exhibits a mildly bearish trend. While recent price movements have shown some positive momentum—such as a 10.38% gain over the past week and a 6.38% rise over three months—the overall technical grade remains cautious. This suggests that although there may be short-term rallies, the broader trend does not yet support a sustained upward movement.
Investors should be aware that technical indicators currently signal limited confidence in the stock’s near-term performance, reinforcing the rationale behind the Strong Sell rating.
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What the Strong Sell Rating Means for Investors
For investors, the Strong Sell rating on Hind Aluminium Industries Ltd serves as a clear cautionary signal. It reflects a consensus view that the stock currently carries elevated risks due to weak fundamentals, unfavourable valuation, stagnant financial trends, and a cautious technical outlook. This rating advises investors to consider avoiding new positions or to evaluate existing holdings carefully, given the potential for further downside or continued volatility.
Investors seeking exposure to the non-ferrous metals sector may wish to explore alternatives with stronger financial health and more favourable market dynamics. Meanwhile, those holding Hind Aluminium shares should monitor developments closely, particularly any improvements in profitability, debt servicing capacity, or operational efficiency that could alter the company’s outlook.
Summary of Key Metrics as of 26 December 2025
- Mojo Score: 17.0 (Strong Sell)
- Market Capitalisation: Microcap
- Quality Grade: Below Average
- Valuation Grade: Risky
- Financial Grade: Flat
- Technical Grade: Mildly Bearish
- Stock Returns: 1 Day +4.96%, 1 Week +10.38%, 1 Month +13.73%, 3 Months +6.38%, 6 Months +0.29%, YTD -6.38%, 1 Year -0.20%
- Operating EBIT to Interest Ratio: -8.44
- Profit After Tax (Latest Quarter): ₹0.79 crore, down 64.7% vs previous 4Q average
- Profit Decline Over Past Year: -12.4%
In conclusion, Hind Aluminium Industries Ltd’s current Strong Sell rating reflects a comprehensive evaluation of its financial and market position as of 26 December 2025. Investors should approach the stock with caution, recognising the significant challenges the company faces and the risks inherent in its current valuation and performance metrics.
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