Is Hindalco Inds. overvalued or undervalued?

As of 1 April 2025, Hindalco Industries has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 8.80, an EV to EBITDA of 5.93, and a PEG ratio of 0.14, indicating strong growth potential relative to its price. In comparison to peers, National Aluminium has a PE of 6.57 and an EV to EBITDA of 4.05, while Hardwyn India is considered very expensive with a PE of 57.57 and an EV to EBITDA of 35.21.
The company's return performance has also been notable, with a year-to-date return of 8.32% compared to the Sensex's 5.66%, and a remarkable 357.05% return over the past five years against the Sensex's 143.13%. This performance reinforces the undervaluation narrative, suggesting that Hindalco Industries presents a compelling investment opportunity in the non-ferrous metals sector.