Hindalco Future Share Price: A Comprehensive Analysis


Hindalco Industries Limited, a subsidiary of Aditya Birla Group, is a prominent player in the aluminum and copper industry not only in India but globally. It is the world’s largest aluminum rolling company and one of the largest producers of primary aluminum in Asia. The company operates across various sectors like aluminum extrusion, copper, and specialty rolled products. The company has witnessed significant growth in recent years, and investors are keenly interested in its future share price.

The purpose of this article is to provide an in-depth analysis of Hindalco’s future share price. The article will explore the current market condition and Hindalco’s financial performance, taking into account several factors that could impact the company’s future share price.

Market Overview

The Indian stock market outperformed global peers in 2020 despite the COVID-19 pandemic. The markets posted a strong recovery and recorded new highs in early 2021. The Indian stock market continues to be volatile but has demonstrated robust growth potential. Several factors will impact the stock market’s performance, including the progress of the COVID-19 vaccine rollout, government policies, and global economic conditions.

The metals and mining sector has seen robust growth driven by the ongoing infrastructure projects and manufacturing activity in India. Hindalco, being in the metals and mining sector, is poised to benefit from this growth. The Indian government’s focus on ‘Make in India’ initiative and various structural reforms in the manufacturing sector augur well for Hindalco’s future growth prospects.

However, the company could face headwinds from the volatility in global commodity prices, including aluminum prices. A slippage in global economic growth could dampen demand for industrial metals, leading to lower prices. The raw material prices for the company’s copper business, such as copper concentrates and copper scrap, could impact Hindalco’s financial performance. Overall, the company’s future share price would depend on the balance between the opportunities and challenges it faces.

Financial Analysis

Hindalco Industries’ financial performance in recent years has been robust. The company has a strong balance sheet with a net debt to EBITDA ratio of 0.94x in Q3 FY 2021. The company’s revenue grew by 2.5% YoY to INR 33,406 crore in Q3 FY 2021.

Hindalco’s aluminum business generates the majority of the company’s revenue. The aluminum business has shown steady growth supported by cost efficiencies, product mix optimization, and higher aluminum prices. The copper business is also expected to grow, supported by improved volumes and higher copper prices.

In terms of valuation, Hindalco’s stock trades at a price-to-earnings (P/E) ratio of 18.33, which is higher than the industry P/E ratio of 16.76. However, the P/E ratio is lower than several of its peers. The company’s earnings per share (EPS) for Q3 FY 2021 was INR 4.76, up from INR -1.32 in Q3 FY 2020. The EPS growth demonstrates the company’s ability to adapt to changing market conditions and maintain profitability.


In conclusion, Hindalco Industries Limited’s future share price will depend on many factors. The market conditions, global commodity prices, and the progress of the ongoing infrastructure projects in India will be crucial in defining the company’s growth prospects. Hindalco’s strong financial performance, robust balance sheet, and the company’s ability to adapt to changing market conditions provide reasons for investors to be optimistic about its future prospects.

Investors must keep a close watch on market developments and company news to make informed decisions about whether to invest in the company’s future growth prospects. With the ‘Make in India’ initiative, strong growth potential of the manufacturing sector, and the focus on infrastructure development, Hindalco Industries Limited is poised for a bright future.