Mehabe score: 5 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 5.
Description
Hindalco Industries is engaged in the business of Aluminium and Aluminium Products, Copper and Copper Products.Site:HINDALCOMain Symbol:HINDALCO
Stock trades at 458.0, above its 50dma 385.3. It also trades above its 200dma 318.59. The stock remains bullish on techicals
The 52 week high is at 428.30 and the 52week low is at 154.40
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– The company has delivered a poor sales growth of 5.97% over past five years.
– has a low return on equity of 7.45% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 10.03% of profits over last 3 years
Competition
– The industry trades at a mean P/E of 18.5x. Arfin India trades at the industry’s max P/E of 27.57x. HINDALCO trades at a P/E of 27.1x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. HINDALCO has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 19.1%. The max 1- month return was given by MMP Industries: a return of 53.36 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 40507.0 cr compared to Rs 29318.0 cr for period ended Mar 2020, a rise of 38.2%
Operating Profits reported at Rs 5638.0 cr for period ended Mar 2021 vis-vis 3840.0 for period ended Mar 2020 .
Operating Margins expanded 82.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 8.58 compared to Rs 8.36 for previous quarter ended Dec 2020 and Rs 2.98 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 131985.0 cr for period ended Mar 2021 vis-vis sales of Rs 118144.0 cr for the period ended Mar 2020, a healthy growth of 10.5%. The 3 year sales cagr stood at 4.6%.
Net Profit reported at Rs 3483.0 cr for period ended Mar 2021 vis-vis sales of Rs 3767.0 cr for the period ended Mar 2020, falling 8.2%.
Company reported a poor Net Profit CAGR of -17.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 17232.0 cr for period ended Mar 2021 vis-vis Rs 12665.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 7.0% over the last 3 Years. – The stock has given a return of 179% on a 1 Year basis vis-vis a return of 29% over the last 3 Years. – The compounded sales growth on a TTM bassis is 12% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of -14% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 24.95% vis-vis 25.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 19.55% vis-vis 19.28% for Mar 2021
Conclusion
– – The company has delivered a poor sales growth of 5.97% over past five years.
– has a low return on equity of 7.45% for last 3 years.
– might be capitalizing the interest cost
-Dividend payout has been low at 10.03% of profits over last 3 years
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 385.3 and is trading at 458.0, thus bullish price action wise.
