Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.81%, lower than industry average of 22.56%.

Growth Trajectory

Profitability

In the growth phase company makes 10.76% profit on every dollar of sales, lower than industry average of 10.94%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.08% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
1.56T INR
Equity Value
1.14T INR
FCF Yield
41.14%
Average ROIC
9.68%
Cost of Capital
9.64%
P/E Ratio
8.40x
Financial MetricMost Recent 12 months (INR)Previous Year (INR)
Revenues2.44T INR2.15T INR
Operating Income or EBIT272.60B INR180.65B INR
Interest Expense32.24B INR37.83B INR
Book Value Of Equity1.24T INR1.06T INR
Book Value Of Debt639.29B INR563.56B INR
Cash and Marketable Securities223.33B INR163.91B INR
Number of Shares Outstanding2.22B--
Minority interests110M INR0 INR
Current Stock Price739.70 INR--
Effective Tax Rate28.00%--
Marginal Tax Rate30.00%--

Performance vs Industry

Revenue Growth
-8.85%
13.70%Company
vs
22.55%Industry
Below Industry
Operating Margin
+0.22%
11.16%Company
vs
10.94%Industry
At Industry Level
Hindalco Industries Limited performs in line with industry averages, showing balanced competitive positioning within its sector.

Terminal Value Analysis

Growth Rate
4.65%
Cost of Capital
8.88%
Return on Capital
8.87%
Reinvestment Rate
52.36%
Terminal value represents 86% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 1.33T INR Add
Present Value (Cash Flow Over Next 10 Years) 224.52B INR Add
Value of Operating Assets 1.56T INR Sub-total
Debt 639.29B INR Subtract
Minority Interests 110.00M INR Subtract
Cash 223.33B INR Add
Value of Equity 1.14T INR Sub-total
Number of Shares 2.22B shares Divisor
Estimated Value per Share (Fair Value) 516.31 INR Total
Current Market Price 743.10 INR Reference

Financial Projections

Total FCF Present Value
224.52B INR
Avg Revenue Growth
4.40%
Avg Operating Margin
10.66%
Avg ROIC
9.68%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue2.57T INR2.69T INR2.82T INR2.96T INR3.10T INR3.25T INR3.40T INR3.56T INR3.73T INR3.90T INR4.09T INR
Growth Rate 5.35% 4.81% 4.81% 4.81% 4.81% 4.78% 4.74% 4.71% 4.68% 4.65% 4.65%
PROFITABILITY
Operating Income287.18B INR293.71B INR304.02B INR314.65B INR325.59B INR341.16B INR357.35B INR374.20B INR391.73B INR409.94B INR429.01B INR
Operating Margin 11.16% 10.89% 10.75% 10.62% 10.48% 10.48% 10.48% 10.48% 10.48% 10.48% 10.48%
EBIT (1-tax)206.77B INR211.47B INR218.89B INR226.54B INR234.43B INR244.27B INR254.44B INR264.94B INR275.77B INR286.96B INR300.30B INR
CASH FLOW
Reinvestment219.52B INR230.09B INR241.16B INR252.77B INR263.14B INR125.73B INR130.80B INR136.02B INR141.40B INR147.97B INR157.25B INR
Free Cash Flow-12.76B INR-18.63B INR-22.27B INR-26.23B INR-28.72B INR118.53B INR123.63B INR128.91B INR134.37B INR138.98B INR143.05B INR
Terminal Value--------------------3.38T INR
Present Value-11.59B INR-15.37B INR-16.70B INR-17.87B INR-17.77B INR66.77B INR63.55B INR60.59B INR57.88B INR54.98B INR—
EFFICIENCY
ROIC 12.50% 11.29% 10.41% 9.66% 9.02% 8.54% 8.52% 8.50% 8.47% 8.45% 8.87%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.83% 9.59% 9.35% 9.11% 8.87% 8.88%
Sales/Capital 0.56x 0.56x 0.56x 0.56x 0.56x 1.22x 1.22x 1.22x 1.22x 1.22x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)
Reinvestment (₹B)