1. At a Glance
Hindalco, the flagship of the Aditya Birla Group, isn’t your friendly neighbourhood rolling mill — it’s a global metals empire. With Novelis (the world’s largest aluminium recycler) as its crown jewel, it controls flat-rolled aluminium, copper cathodes, and packaging foils. At ₹667/share and a ₹1,50,113 Cr market cap, it trades at a humbleP/E of 8.67, screaming “undervalued” in metal-speak. Q1 FY26 revenue: ₹64,232 Cr (+13% YoY), PAT: ₹4,004 Cr (+30% YoY).
2. Introduction
Think of Hindalco as the Avengers of metals — except instead of Iron Man, you get actual aluminium man. Born in 1958, it went from domestic aluminium sheets to acquiring Novelis in 2007, instantly becoming a global heavyweight. Today,59% of revenuecomes from Novelis, 41% from India’s aluminium & copper business.
The cyclical nature of commodities means earnings swing harder than a cricket bat in a T20 match. But FY25–26 shows Hindalco’s knack for riding cycles: TTM sales ₹2,45,715 Cr, PAT ₹16,932 Cr, and a solid ROE of 14%.
3. Business Model (WTF Do They Even Do?)
- Novelis: Flat-rolled aluminium products, recycling, supplying auto, aerospace, and beverage can industries.
- Aluminium India: Upstream smelting, downstream value-added products, foils, extrusions.
- Copper India: Cathodes, continuous cast rods, precious metal recovery.
- Energy: Captive power plants because smelting eats electricity like kids eat candy.
Their strength? Being vertically integrated — from bauxite mines to final foil rolls.
4. Financials Overview
- TTM Revenue:₹2,45,715 Cr
- TTM EBITDA:
- ₹32,208 Cr (EBITDA margin ~13%)
- TTM PAT:₹16,932 Cr (Net margin ~6.9%)
- Q1 FY26 Revenue:₹64,232 Cr (+13% YoY)
- Q1 FY26 PAT:₹4,004 Cr (+30% YoY)
P/E Recalculation:Q1 EPS = ₹17.82 ⇒ Annualised EPS ≈ ₹71.28CMP ₹667 ⇒ Adjusted P/E ≈9.36(still bargain basement for a global metals major).
5. Valuation (Fair Value Range)
| Method | Calculation | FV (₹) |
|---|---|---|
| P/E Method | EPS ₹70–72 × P/E 10–12 | 700–860 |
| EV/EBITDA | EBITDA ₹32,208 Cr × 6–7 EV/EBITDA – Net Debt ₹~63,000 Cr | 720–800 |
| DCF (10% WACC, 3% growth) | Based on 5-yr commodity cycle projections | 680–760 |
Fair Value Range:₹680 – ₹820
This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- $125M AluChem acquisition– strengthens specialty alumina portfolio.
- $400M bond issue– for capex & refinancing.
- Board shake-up– Director term ended, WTD resigned (but still stays in senior role).
- Novelis shipments– steady
