Hindalco Industries Ltd is Rated Buy

Current Rating and Its Significance

MarketsMOJO currently assigns Hindalco Industries Ltd a 'Buy' rating, supported by a Mojo Score of 78.0. This rating indicates a positive outlook on the stock, suggesting it is a favourable investment opportunity for investors seeking growth with a balanced risk profile. The 'Buy' grade reflects a combination of strong fundamentals, attractive valuation, positive financial trends, and bullish technical indicators. While the rating was adjusted from 'Strong Buy' on 18 Nov 2025, the current assessment is based on comprehensive data as of 09 January 2026, ensuring investors receive an up-to-date evaluation.

Quality Assessment

Quality is a critical parameter in the rating, and Hindalco scores well in this regard. As of 09 January 2026, the company maintains a 'good' quality grade, underpinned by a low average Debt to Equity ratio of 0.48 times. This conservative leverage level reduces financial risk and enhances stability. Furthermore, Hindalco has demonstrated consistent operational strength, declaring positive results for eight consecutive quarters. The company’s operating cash flow for the year stands at a robust ₹24,410 crore, while its operating profit to interest coverage ratio is an impressive 11.17 times, indicating strong earnings relative to interest obligations. These factors collectively affirm the company’s solid operational and financial quality.

Valuation Perspective

Valuation remains an attractive aspect of Hindalco’s profile. The company holds an 'attractive' valuation grade, supported by a Return on Capital Employed (ROCE) of 13.6%, which is a healthy indicator of efficient capital utilisation. The Enterprise Value to Capital Employed ratio is 1.4, signalling that the stock is trading at a discount relative to its peers’ historical valuations. This valuation appeal is further enhanced by a Price/Earnings to Growth (PEG) ratio of 0.3, suggesting that the stock’s price growth is favourable compared to its earnings growth. Investors looking for value combined with growth potential may find Hindalco’s current valuation compelling.

Financial Trend Analysis

The financial trend for Hindalco Industries Ltd is decidedly positive. As of 09 January 2026, the company exhibits strong growth metrics, with net sales increasing at an annual rate of 17.13% and operating profit growing at 25.51% annually. Profit After Tax (PAT) for the first nine months has reached ₹14,155.10 crore, reflecting a substantial growth rate of 32.02%. These figures highlight the company’s ability to expand its top and bottom lines consistently. Additionally, the stock has delivered a remarkable 53.31% return over the past year, underscoring its strong market performance alongside improving profitability.

Technical Outlook

From a technical standpoint, Hindalco maintains a 'bullish' grade, indicating positive momentum in its stock price. The recent price movements show resilience, with a 1-month gain of 11.30%, a 3-month increase of 16.83%, and a 6-month rise of 34.39%. Year-to-date, the stock has appreciated by 2.00%, reflecting steady investor confidence. The daily change as of 09 January 2026 is a modest +0.06%, suggesting stability. This technical strength supports the 'Buy' rating by signalling favourable market sentiment and potential for continued upward movement.

Institutional Confidence and Market Position

Institutional investors hold a significant 56.56% stake in Hindalco Industries Ltd, which is a noteworthy endorsement given their superior analytical resources and long-term investment horizon. This high institutional holding often correlates with greater stock stability and informed market participation. Hindalco’s large-cap status within the Non-Ferrous Metals sector further enhances its appeal as a core portfolio holding for investors seeking exposure to industrial metals with growth prospects.

Investor Implications of the 'Buy' Rating

For investors, the 'Buy' rating on Hindalco Industries Ltd suggests a favourable risk-reward profile. The company’s strong fundamentals, attractive valuation, positive financial trends, and bullish technical indicators collectively support the potential for capital appreciation. While the rating is one notch below 'Strong Buy', it still reflects confidence in the company’s ability to deliver value over the medium to long term. Investors should consider this rating as an endorsement to accumulate or hold the stock, particularly if seeking exposure to the non-ferrous metals sector with a large-cap, financially sound company.

Summary of Key Metrics as of 09 January 2026

To summarise, Hindalco Industries Ltd’s key metrics include:

• Mojo Score: 78.0 (Buy grade)


• Debt to Equity Ratio: 0.48 times (low leverage)


• Net Sales Growth: 17.13% CAGR


• Operating Profit Growth: 25.51% CAGR


• Operating Cash Flow (Yearly): ₹24,410 crore


• Operating Profit to Interest Coverage: 11.17 times


• PAT (9 months): ₹14,155.10 crore, growing at 32.02%


• ROCE: 13.6%


• Enterprise Value to Capital Employed: 1.4


• PEG Ratio: 0.3


• Stock Returns (1 Year): +53.31%


• Institutional Holdings: 56.56%

These figures illustrate a company with solid financial health, growth momentum, and market confidence, justifying the current 'Buy' rating.

Outlook and Considerations

Looking ahead, Hindalco’s position in the non-ferrous metals sector, combined with its operational efficiency and valuation appeal, positions it well to capitalise on industry growth trends. Investors should monitor commodity price fluctuations and global demand dynamics, which can impact earnings volatility. Nonetheless, the company’s strong balance sheet and consistent profitability provide a buffer against cyclical risks.

In conclusion, Hindalco Industries Ltd’s 'Buy' rating by MarketsMOJO as of 18 Nov 2025, supported by current data from 09 January 2026, offers investors a well-rounded opportunity grounded in quality, value, financial strength, and positive technical momentum.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →