Stock Performance and Recent Momentum
On 28 Jan 2026, Hindalco Industries Ltd touched an intraday high of Rs.984.8, representing a 2.37% increase on the day and setting a fresh all-time peak. The stock has been on a consistent upward trajectory, recording gains for five consecutive trading days and delivering a cumulative return of 5.45% during this period. Despite underperforming its sector by 0.79% on the day, the stock’s performance remains impressive given the Aluminium & Aluminium Products sector’s gain of 3.24%.
Hindalco’s price currently trades above all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling strong technical support and positive investor sentiment. This technical strength is complemented by the stock’s 1.35% day change, underscoring steady buying interest.
Sector and Market Context
The broader market environment has been favourable, with the Sensex rising 0.45% to close at 82,225.13 points after a flat opening. Although the Sensex remains 4.78% below its own 52-week high of 86,159.02, mega-cap stocks have been leading the market’s advance. Hindalco, with a market capitalisation of Rs.2,16,183 crores, stands as the largest company in the non-ferrous metals sector, accounting for 73.84% of the sector’s total market cap. This dominant position reinforces its influence on sectoral trends and investor focus.
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Financial Strength and Operational Highlights
Hindalco’s financial metrics underpin its market performance. The company maintains a low average debt-to-equity ratio of 0.48 times, reflecting prudent leverage management. Net sales have grown at an annualised rate of 17.13%, while operating profit has expanded at 25.51% annually, indicating healthy top-line and margin growth.
Operating cash flow for the year reached a peak of Rs.24,410 crores, and the operating profit to interest coverage ratio stands at a robust 11.17 times, signalling strong earnings capacity relative to debt servicing costs. The company’s profit after tax (PAT) for the first nine months has surged by 32.02% to Rs.14,155.10 crores, further highlighting its earnings momentum.
Valuation and Market Position
Hindalco’s return on capital employed (ROCE) is 13.6%, which, combined with an enterprise value to capital employed ratio of 1.4, suggests a fair valuation relative to its capital base. The stock currently trades at a discount compared to its peers’ average historical valuations, offering relative value within the non-ferrous metals sector.
Over the past year, the stock has delivered a remarkable 69.42% return, significantly outperforming the Sensex’s 8.33% gain over the same period. Profit growth of 37.3% over the year has contributed to a low PEG ratio of 0.3, indicating that earnings growth is not fully priced into the stock.
Institutional Backing and Market Recognition
Institutional investors hold a substantial 55.86% stake in Hindalco, reflecting confidence from entities with extensive analytical resources. The company is also ranked among the top 1% of all 4,000 stocks rated by MarketsMojo, with a Mojo Score of 75.0 and a current Mojo Grade of Buy, upgraded from Strong Buy on 18 Nov 2025. This rating reflects the company’s strong fundamentals and market standing.
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Long-Term Performance and Sector Leadership
Hindalco’s market cap of Rs.2,16,183 crores makes it the largest player in the non-ferrous metals sector, representing 73.84% of the sector’s total capitalisation. Its annual sales of Rs.2,53,570 crores account for 92.57% of the industry’s revenue, underscoring its dominant market position.
The stock’s long-term performance has been market-beating, outperforming the BSE500 index over the last three years, one year, and three months. This sustained outperformance is supported by consistent positive quarterly results, with the company reporting favourable outcomes for eight consecutive quarters.
Hindalco’s 52-week low stands at Rs.546.25, highlighting the significant appreciation in share price over the past year and the strength of its recent rally.
Summary of Key Metrics
To summarise, Hindalco Industries Ltd’s recent surge to a new 52-week high of Rs.984.8 is backed by strong financial performance, solid operational metrics, and a commanding sector presence. The stock’s technical indicators, institutional backing, and valuation metrics collectively illustrate a well-supported rally within the non-ferrous metals space.
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