There’s no doubt that Hindalco’s share price is influenced by a variety of factors, but there are three drivers that stand out above the rest.
What are the major drivers of Hindalco’s share price
The share price of Hindalco, an Indian aluminium producer, is driven by a number of factors. These include global aluminium prices, production costs, energy costs, currency movements and demand from key markets such as India and China.
Aluminium prices are determined by global supply and demand. When demand is strong and supplies are tight, prices rise. Hindalco’s cost of production is also a major factor influencing its share price. Energy and raw material costs make up a large proportion of the company’s costs, so any changes in these prices can have a big impact on profitability and the share price.
Hindalco exports a significant proportion of its aluminium production, so changes in currency values can also affect the share price. A strong Indian rupee makes Hindalco’s products more expensive in international markets and can lead to a fall in the share price. Conversely, a weak rupee makes Hindalco’s products cheaper and can help to boost the share price.
Finally, demand from key markets such as India and China is another driver of Hindalco’s share price. If demand from these markets is strong then this will support higher prices, but if it weakens then prices may come under pressure.
How has Hindalco’s share price performed over time
Hindalco’s share price has been on a steady uptrend over the past few years. This can be attributed to the company’s strong financial performance and positive outlook. For instance, Hindalco reported a net profit of Rs 1,372 crore in the March quarter of FY21, up from Rs 972 crore in the same period last year. This was driven by higher sales and operational efficiencies.
Looking ahead, Hindalco is well-positioned to benefit from the growing demand for aluminum globally. This, coupled with the company’s efforts to reduce debt and improve profitability, should continue to support the stock’s upward momentum.
What is Hindalco’s current share price
Hindalco’s current share price is Rs. 195.35. The company’s stock opened at Rs. 199.90 and has a day high of Rs. 200.15 and a day low of Rs. 194.85.
What is Hindalco’s 52-week high and low share price
Hindalco’s 52-week high and low share price is Rs.251.45 and Rs.196.15 respectively.
What analysts are saying about Hindalco’s share price
Hindalco’s share price has been on a roller coaster ride in the last few months. The stock hit a 52-week high of Rs 205 in February 2020 but tanked to Rs 122 in March 2020 amid the Covid-19 pandemic. However, the stock has recovered some lost ground and is currently trading at Rs 152.
Here’s what analysts are saying about Hindalco’s share price:
1. “Hindalco’s share price is likely to remain under pressure in the near term due to the weak demand outlook for aluminium and copper. However, the long-term prospects for the company remain positive given its strong fundamentals.” – Edelweiss Securities
2. “We believe that Hindalco is well placed to benefit from the global economic recovery. The company’s diversified business model and strong balance sheet provide it with the necessary flexibility to navigate through challenging times.” – Motilal Oswal Securities
3. “Hindalco is one of the most leveraged companies in our coverage universe. While we expect some deleveraging in FY21/22E, we believe that Hindalco’s debt levels will remain elevated even after that.” – ICICI Securities
4. “Hindalco’s share price is expected to remain under pressure in the near term due to the weak demand outlook for aluminium and copper. However, the long-term prospects for the company remain positive given its strong fundamentals.” – Axis Capital
How does Hindalco’s share price compare to its peers
Hindalco is one of the world’s largest aluminum producers and its share price has been on a tear in recent years. The company’s stock has more than tripled since 2013 and is currently trading near all-time highs. But how does Hindalco’s share price compare to its peers?
In terms of raw aluminum production, Hindalco is the second largest producer in the world behind only China’s state-owned Chalco. However, when it comes to market capitalization, Hindalco is the fifth largest aluminum company with a market cap of around $15 billion.
The four companies ahead of Hindalco in terms of market cap are all U.S.-based: Alcoa (AA), Rio Tinto (RIO), BHP Billiton (BHP), and Vale (VALE). Of these four, only Alcoa has a larger market cap than Hindalco when measured in U.S. dollars.
When comparing Hindalco’s share price to its peers, it is clear that the Indian aluminum giant is significantly undervalued. While Hindalco’s shares have more than tripled since 2013, the shares of its peers have only doubled or tripled over the same time period.
This means that Hindalco’s shares are currently trading at a significant discount to its peers. For value investors, this makes Hindalco an attractive investment opportunity.
What news stories are affecting Hindalco’s share price
The aluminum producer Hindalco Industries Ltd. has been in the news recently for a number of reasons. First, the company announced that it would be investing Rs. 3,000 crore to set up a new aluminum smelter in Odisha. This is good news for Hindalco, as it will help boost its production capacity. Second, the company reported its financial results for the quarter ended March 31, 2019. The results were mixed, with Hindalco’s revenue and profit both increasing year-on-year, but missing analyst expectations. Finally, shares of Hindalco have come under pressure after the U.S. imposed tariffs on imported aluminum products. Overall, these news stories have had a negative impact on Hindalco’s share price.
How do Hindalco’s fundamentals look
Hindalco is one of the world’s largest aluminum producers and is also one of the largest producers of copper. The company has a strong presence in both primary and downstream aluminum products. Its operations are spread across 11 countries and it has a workforce of over 60,000 people.
The company’s revenue for the fiscal year ended March 31, 2018 was Rs. 71,481 crore (US$ 10.9 billion). Its net profit for the same period was Rs. 4,732 crore (US$ 723 million).
Hindalco’s share price has been under pressure in recent times due to concerns about the company’s debt levels and profitability. However, its strong fundamentals suggest that it is well-positioned to weather these challenges and emerge even stronger.
Should I buy Hindalco shares
There’s no easy answer to this question, as there are many factors to consider before making any investment decision. However, if you’re thinking about buying Hindalco shares, here are a few things you should keep in mind.
First and foremost, it’s important to remember that share prices can go up and down, so you could lose money as well as make money from your investment. With that said, Hindalco is currently India’s largest aluminum producer, and is also one of the world’s leading producers of aluminum products.
The company has a strong presence in both the domestic and international markets, and its share price has been on the rise in recent years. Hindalco also has a good track record of paying dividends to shareholders, which could provide some income even if the share price falls.
Of course, there are no guarantees in the stock market, and Hindalco shares may not continue to perform well in the future. However, if you’re comfortable with the risks, buying Hindalco shares could be a good way to boost your investment portfolio.
Is now a good time to sell Hindalco shares
Hindalco shares have been on a downward trend for the past few months and are currently trading at a 52-week low. This may be a good time to sell Hindalco shares if you are looking to exit your position.