Hindalco Industries Limited (HINDALCO.BO) Stock Analysis & Winston Score

Hindalco Industries Limited is one of Asia's largest aluminum and copper producers, headquartered in Mumbai, India. It makes aluminum sheets, foils, rods, and copper products used in industries like construction, packaging, automobiles, and electronics. Hindalco is part of the Aditya Birla Group and owns Novelis, a major global aluminum rolling company that recycles used aluminum cans and sells rolled aluminum to automakers and beverage companies worldwide.

Hindalco earns money by selling aluminum and copper products to industrial customers, with Novelis contributing a large share of revenue through long-term supply contracts with manufacturers. The company operates across India, North America, Europe, and Asia, making it a truly global business with significant scale. Its competitive edge comes from owning mines, smelters, and recycling plants — controlling much of its own supply chain. The key growth driver is rising demand for lightweight aluminum in electric vehicles, though the business faces risk from volatile commodity prices and energy costs.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+23.2% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-50.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (3%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

37.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$0 cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Hindalco Industries Limited is a rare growth stock that's already generating positive cash flow while growing at 23%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

−0.1% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.23B (2022) → 2.22B (2026)

Score breakdown

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Quality

Gross Margin

24.0%

Thin — 24.0% gross margin

Operating Margin

13.7%

Healthy — 13.7% operating margin

ROCE

5.0%

Weak — 5.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+21.0%

Fast-growing sales (+21.0% YoY)

EPS YoY

-3.1%

Earnings shrinking (-3.1% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

49%

Weak — only 49% of profit becomes cash

FCF Margin

-0.9%

Burning cash (-0.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.71

Moderate — manageable debt (0.71)

Interest Cover

8.67x

Comfortably covers interest (8.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

14.3x

Attractive valuation — P/E 14.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+4.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (14.3 → 10.0)

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Dividends

Dividend Yield

0.46%

Small dividend — 0.46% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+79.3%

Dividend growing fast (79.3% YoY)

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