Hindalco Industries Limited is an aluminium manufacturing company and is a subsidiary of Aditya Birla Group. The company is one of the world’s largest aluminium rolling companies.
Hindalco Market Capitalisation
The market capitalisation of Hindalco is more than Rs.50,700 crore as of March, 2018.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Hindalco Industries Limited reported its total income to be at Rs.10,698.6 crore. Over the same quarter of the previous fiscal year, this marks a marginal improvement of Rs.30 crore.
- Considering the profitability of the company, its profit after tax (PAT) for the June quarter stood at Rs.413.53 crore as against a PAT of Rs.289.5 crore for the Q1 FY 2017-18.
- However, considering the performance of Hindalco Standalone along with Utkal Alumina Limited, its PAT was reported to be at Rs.734 crore - an improvement of a little over 102% y-o-y.
- Consequently, the company’s earnings per share for the period improved from Rs.1.30 to Rs.1.86, y-o-y.
- For the year ended on March 31, 2018, Hindalco Industries Limited reported its consolidated total income to be at Rs.1,16,913.16 crore as against a total income of Rs.1,03,742.4 crore reported for the previous fiscal year.
- The FY 2017-18 also recorded the highest ever consolidated EBITDA at Rs.15,025 crore.
- Consequently, the consolidated profit after tax for the year stood at Rs.6,082.8 crore - an improvement of a little over 300% y-o-y. The earnings per share for the year also improved from Rs.9.22 to Rs.27.30.
- Considering the segment wise revenue, Novelis witnessed a growth of 15% y-o-y while recording its highest shipment at 3.2 million tonnes. Copper and Aluminium segments also recorded its highest production levels.
- For the FY 2018, the company’s debt-equity ratio was stated to be 0.41, as against 0.57 for the previous fiscal year.
- The company’s revenue from operations for the third quarter was Rs.11,023 crore, owing to higher volumes, robust operational performance, macro factors and by-product realisation. Comparing this metric with Q3 FY17, there has been a growth of more than 10% in revenues.
- EBITDA for the quarter was up by 15% year-on-year to Rs.1,611 crore.
- Hindalco’s standalone profit before tax stood at Rs.746 crore for the September-December quarter, which is a 62% increase over the same period last year. This growth was primarily driven by better financial performance across all its businesses. The net profit for the quarter was reported to be Rs.376 crore, in comparison to Rs.320 crore in the same period previous year.
- Over the course of last quarter, the company shifted its focus on boosting production at Utkal Alumina and Copper Rod Mill, which played a key role in boosting company’s financial performance this quarter.
- Considering sector-wise performance, aluminium EBITDA was up by 7% y-o-y while copper EBITDA increased by 28% y-o-y.
Hindalco Stock Trends in 2018
- Hindalco stock price on January 1, 2018, on NSE and BSE was Rs.273. The month of January did not witness any major fluctuations in share price. The closing price at the end of the month in NSE was Rs.256.15.
- The opening price at the start of February was Rs.257.80 on NSE and BSE. Owing to weak global cues and worldwide market turbulence, the scrip shed its previous gains and by mid-February, Hindalco stocks were changing hands at around Rs.240-250. The closing price on February 28, 2018, was Rs.245.40.
- The prices dipped further over the course of March. The stock price of Hindalco Industries Limited lost a little over 15% over the course of the month. The slump was seen through the first week of April as well, with the closing price of the shares on April 4 being Rs.200.80.
- This fall was followed by a meteoric rise which led to the shares making exceptional gains in a matter of two weeks. From trading at levels above Rs.200, the shares went up to be traded at levels above Rs.250 in just two weeks. The shares gained more than 20% in April alone, although they ended up shedding quite a bit in the final week. On April 30, the closing price of the shares was Rs.235.65.
- Through the course of May and the first half of June, the Hindalco shares were traded at levels varying from Rs.230 - Rs.245. The scrip didn’t make any considerable gains in this period. However, in the second half of June, the Hindalco shares went down to exhibit a highly bearish trend. In fact, on July 23, the shares hit their 52-week low at Rs.192.35.
- However, the shares managed to recover in the month of August and the scrip went up to reach its previous levels at Rs.240. As of early September, the shares were seen trading hands at levels varying at the Rs.245 mark.
Hindalco Stock Trends in 2016 and 2017
- Hindalco share price at the start of 2016 around Rs.80 on NSE and BSE. Over the course of next few weeks, the price went down and as a result, shares were being traded at less than Rs.70 in February. However, the stocks recovered in March on the back of buoyant markets and the closing price at the end of the month was Rs.87.
- For a brief period in April 2016, the scrip crossed Rs.100 driven by company updates, but failed to stabilise there. By the end of the month, Hindalco stocks were being traded at around Rs.95. In May, the stocks managed to get past the Rs.100 barrier, driven by strong performance in Q4 FY18. The steady rise continued in June as well and the closing price on June 30, 2016, was Rs.122.85 on NSE. It also hit a new 52-week high in the month.
- The upward trend sustained itself through July and August as well owing to surge in metal stocks and positive global cues. By late July, the stock price had crossed Rs.130 and by mid-August, it was past Rs.150. A final dividend of 100% was announced in September which helped Hindalco shares maintain its heading.
- October was a relatively dull month for Hindalco stocks. It was in November that the stocks commenced another upward trend and this time, the scrip crossed Rs.170. The share price remained above this level for most of December 2016. However, in the final few days of the month, the stocks shed its recent gains and closed at Rs.155 at the end of the year.
- The opening price at the start of January 2017 was around Rs.155 on NSE and BSE. The share price rose steadily through the month and it managed to reach Rs.190 by the end of January. Q3 FY17 results were announced in February which did well to boost investors’ confidence. Through the month of March, the share price stabilised at around Rs.190.
- A similar trend was observed through the months of April, May, and June. Hindalco stock price varied around Rs.190 benchmark while occasionally crossing Rs.200 during intraday trading. Towards the end of May, the scrip did cross Rs.200, although it did not stay there for long. The closing price at the end of June was Rs.190.
- In July, the stocks commenced another upward trend and this time, the stocks did not only move past Rs.200, but they managed to stay there. The same continued in August as well driven primarily by strong performance in Q1 FY18. By mid-August, Hindalco shares were being traded at well above Rs.230. In early September, a final dividend of 110% was announced by the company.
- The surge in stock price continued even in October and by the middle of the month, the shares had crossed Rs.270. In November however, the share price went down and shed its recent gains. Nonetheless, the stocks staged an impressive comeback in December and the closing price at the end of the year was Rs.273.55 on NSE.
Hindalco Limited is a leading aluminium and alumina manufacturing company headquartered in Mumbai. The company is the biggest producer of rolling aluminium in Asia and is also a leading copper smelting company. The company manufactures rolled as well as extruded aluminium products at dedicated plants across the country. Aluminium foil and packaging are also among the company’s key products. In the copper business, the company produces copper cathodes as well as copper rods for various purposes, in addition to precious metals such as gold and silver.
History of the Company
Hindalco Limited (formerly known as the Hindustan Aluminium Corporation Limited) was established in the year 1958 by the Aditya Birla Group. The company is the flagship company of the group and Hindalco formally began operations in Uttar Pradesh in 1962, manufacturing aluminium metal and alumina. The company changed its name to Hindalco in 1989 and focussed on the manufacture of copper and aluminium to become a leader in the non-ferrous metals industry.
The company entered into alliance sand partnerships with global companies such as the acquisition of Novelis in 2007, which cemented its positon as a global leader in aluminium rolling. The company’s copper smelting facility in India is the world’s largest single location copper smelter, one of many distinctions that characterise the company’s growth.
With the aim of expanding their manufacturing capabilities, the company bought Indal and Mt Gordon mines in Australia, merging Hindalco’ copper business with overseas arms.
The company is also exploring investment options in South Korea and other parts of Asia through Novelis, and has increased investment in research and development in the non-ferrous metals mining and manufacturing segment.
Mr. Kumar Mangalam Birla- Chairman
Mr. Birla is the Chairman of the Aditya Birla Group and all subsidiaries, Hindalco being one of them. An alumni of the Mumbai University, he has also earned an MBA from the London Business School. As Chairman of the Aditya Birla Group, he has taken the group as well as individual companies to new heights. The company has expanded it’s scope of operations, setting up plants in Egypt, Australia, China and Thailand.
Alongwith his duties at Aditya Birla, he is also Chairman of the Securities and Exchanges Board of India (SEBI) on Corporate Governance. A Director on the Central Board of Directors of the Reserve Bank of India, he is also the Chairman of the Indian Institute of Technology, Delhi.
A champion of corporate social responsibility, he has set up several social welfare initiatives at various levels in the organisation.
Mr. Satish Pai – Managing Director
Mr. Pai has served as the Managing Director of Hindalco Industries since August 2016. He was appointed the CEO of the company in August 2013 and thereafter elevated to the post of Deputy Managing Director in February 2014.
Previously associated with Schlumberger for over 20 decades, he handled global operations for the company.
At present, Mr. Pai serves on the boards of Hindalco Industries and ABB Zurich.
Mr. Pai received his Bachelor’s Degree in Mechanical Engineering from the Indian Institute of Technology, Madras.
Hindalco Industries Listing in NSE, BSE and Indices
Hindalco Industries shares are available for trading on the Bombay Stock Exchange (BSE) and the National Stock Exchange. For the purpose of trading, the codes associated with the company are listed below are:
In addition to being listed on the BSE and NSE, Hindalco Industries is also listed on other bourses, some of which are mentioned below:
- Nifty 50
- Nifty 100
- S&P BSE 100
- S&P BSE DOllex-30
- S&P BSE LargeCap
Hindalco Industries is headquartered in Mumbai, Maharashtra. The head office is listed below:
Hindalco Industries Limited,
Birla Centurion, 7th Floor,
Pandurang Budhkar Road,
Worli, Mumbai- 400030
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