Strong Price Momentum and Market Context
The stock has demonstrated notable strength, gaining for five consecutive days and delivering a cumulative return of 7.74% during this period. Trading above all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Hindalco’s price action signals a well-established upward trend. This performance is particularly impressive given the broader market backdrop, where the Sensex opened lower at 85,640.05, down 0.14%, and currently trades marginally below its 52-week high by 0.58%.
While the Sensex and BSE Small Cap indices showed mixed movements, Hindalco’s outperformance underscores its resilience and sectoral leadership. The stock’s day change of 0.60% was in line with the Non-Ferrous Metals sector’s overall performance, reinforcing its role as a bellwether within the industry.
Robust One-Year Performance and Valuation Metrics
Over the past year, Hindalco Industries Ltd has delivered a remarkable 57.57% return, significantly outpacing the Sensex’s 8.08% gain. The stock’s 52-week low was Rs.546.25, highlighting the substantial appreciation in value over the period. This strong price appreciation is supported by solid fundamentals, including a low average debt-to-equity ratio of 0.48 times, which indicates prudent financial management and a balanced capital structure.
Annual net sales have grown at a compound rate of 17.13%, while operating profit has expanded at an even more impressive 25.51% rate. The company has reported positive results for eight consecutive quarters, reflecting consistent operational strength. Operating cash flow for the year reached a peak of Rs.24,410 crore, and the operating profit to interest coverage ratio stands at a robust 11.17 times, underscoring the firm’s strong ability to service debt obligations.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Profitability and Return Metrics
Profit after tax (PAT) for the first nine months stands at Rs.14,155.10 crore, reflecting a year-on-year growth of 32.02%. The company’s return on capital employed (ROCE) is a healthy 13.6%, indicating efficient utilisation of capital to generate earnings. Valuation metrics further support the stock’s appeal, with an enterprise value to capital employed ratio of 1.4, suggesting an attractive valuation relative to its capital base.
Hindalco’s price-to-earnings-to-growth (PEG) ratio is 0.3, signalling that the stock is trading at a discount compared to its peers’ average historical valuations. This valuation is complemented by high institutional holdings at 56.56%, reflecting confidence from investors with significant analytical resources.
Market Position and Sector Leadership
With a market capitalisation of Rs.2,08,048 crore, Hindalco is the largest company in the Non-Ferrous Metals sector, accounting for 75.68% of the sector’s total market cap. Its annual sales of Rs.2,53,570 crore represent 92.57% of the industry’s total, underscoring its dominant position. The company’s scale and consistent financial performance have earned it a Mojo Score of 78.0 and a Mojo Grade of Buy, following a recent downgrade from Strong Buy on 18 Nov 2025.
Ranked ninth among all Large Cap stocks and 44th across the entire market by MarketsMojo, Hindalco is among the top 1% of companies rated across over 4,000 stocks. This ranking reflects its strong fundamentals, consistent earnings growth, and market leadership.
Curious about Hindalco Industries Ltd from Non - Ferrous Metals? Get the complete picture with our detailed research report covering fundamentals, technicals, peer analysis, and everything you need to decide!
- - Detailed research coverage
- - Technical + fundamental view
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Long-Term and Recent Market Outperformance
Hindalco’s market-beating performance extends beyond the past year. The stock has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating sustained strength across multiple time horizons. This consistent outperformance is supported by the company’s steady growth in profits, which have risen by 37.3% over the past year, reinforcing the stock’s upward trajectory.
The company’s leadership in the Non-Ferrous Metals sector, combined with its strong financial health and valuation metrics, has contributed to its ability to maintain momentum and reach new price highs.
Summary of Key Financial Highlights
To summarise, Hindalco Industries Ltd’s recent surge to Rs.938.1 marks a significant milestone, supported by:
- Five consecutive days of gains with a 7.74% return in this period
- Trading above all major moving averages, signalling strong technical momentum
- Robust one-year return of 57.57%, outperforming the Sensex by nearly 50 percentage points
- Consistent growth in net sales (17.13% CAGR) and operating profit (25.51% CAGR)
- Strong profitability metrics including a 32.02% growth in PAT (9M) and a ROCE of 13.6%
- High institutional ownership at 56.56%, reflecting confidence from sophisticated investors
- Market leadership with a Rs.2,08,048 crore market cap and dominant sector share
These factors collectively underpin the stock’s ability to reach new highs and maintain its position as a key player in the Non-Ferrous Metals sector.
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