- Hindalco’s consolidated net profit for the first quarter is 40 billion rupees, marking a 30% increase from the previous year. This exceeds the market estimate of 38 billion rupees.
- The company achieved sales totaling 642.3 billion rupees, representing a 13% year-on-year increase. This is above the estimated sales figure of 598.22 billion rupees.
- Copper sales reached 148.9 billion rupees, up 12% from the previous year, surpassing the estimated 127.44 billion rupees.
- Total costs for Hindalco amounted to 591.6 billion rupees, reflecting a 13% increase compared to the previous year.
- Other income for the company saw a significant rise, reaching 6.02 billion rupees, an increase of 42% year-on-year.
- The parent company’s net profit stands at 18.6 billion rupees, up 27% year-on-year.
- Parent company sales were recorded at 242.6 billion rupees, a 9.5% increase from the previous year, slightly exceeding the estimate of 238.19 billion rupees.
- P.K. Maheshwari has resigned as the whole-time director of the company.
- In analyst ratings, there are 20 buy recommendations, 5 hold recommendations, and 4 sell recommendations.
Hindalco Industries on Smartkarma
Analyst coverage of Hindalco Industries on Smartkarma reveals a mixed sentiment from independent analyst Rahul Jain. In a report titled “Novelis: Cautious Outlook Amid Heavy U.S. Capex and Scrap Volatility,” Jain highlights Novelis facing uncertainty and challenges ahead despite strong EBITDA, citing factors like demand fluctuations, capex increase, and potential margin pressures. Management’s decision to withhold guidance adds to the cautious tone, with concerns over scrap supply tightness and tariff pressures impacting margins.
On the other hand, Jain’s report “Hindalco (HNDL IN): Several Positive Triggers” presents a more optimistic view. Rising aluminium demand, especially in China, is seen as a positive driver for companies like Hindalco, offering potential for improved margins at Novelis. The report notes Hindalco’s fully integrated Indian operations and the company’s discounted valuation compared to historical PE multiples, indicating potential opportunities amidst the positive market trends.
A look at Hindalco Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma’s Smart Scores for Hindalco Industries, the company seems to have a positive long-term outlook. With high scores in value, Hindalco Industries is considered to be fundamentally sound in terms of its financial health and market position. Additionally, the company’s decent scores in dividend, growth, resilience, and momentum indicate a balanced performance across various key factors. These scores suggest that Hindalco Industries is well-positioned to navigate market challenges and capitalize on growth opportunities in the future.
Hindalco Industries Limited, an integrated aluminum manufacturer, engages in mining bauxite and refining it into alumina. The company also conducts operations such as smelting alumina into aluminum and producing semi-fabricated rolled and extruded products. Its product line includes aluminum ingots, steel rods, and rolled flat steel products. Overall, Hindalco Industries appears to have a solid foundation and a promising outlook based on its Smart Scores, which bodes well for its long-term growth and performance in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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