Hindalco Share Price: On Wednesday morning, Hindalco’s stock moved between ₹655 and ₹671.50. Hindalco Industries released its March quarter (Q4FY25) results this week, showing impressive numbers across the board.
Despite the positive Q4 results, the market’s response was muted, suggesting that investors are cautious, possibly due to global factors and outlook uncertainty.
Q4 Results
Hindalco reported a massive 66% jump in consolidated net profit, reaching ₹5,283 crore in Q4FY25, compared to ₹3,174 crore in the same quarter last year. The company’s revenue also saw a healthy rise of 16%, growing to ₹64,890 crore from ₹55,994 crore year-on-year.
One of the biggest contributors to this growth was the aluminium segment, particularly upstream operations. The company’s consolidated EBITDA surged 43% to ₹10,296 crore. In the upstream aluminium business, Hindalco achieved an EBITDA per tonne of $1,684—an improvement from $1,480 in the previous quarter and significantly higher than $967 in Q4FY24.
The downstream aluminium segment also showed sequential improvement, with EBITDA per tonne increasing to $240 from $179 in the previous quarter.
Buy, Hold or Sell
Analysts have mixed opinions following the earnings report. While domestic operations have shown strong momentum, concerns remain around the US-based subsidiary, Novelis, especially due to potential trade policies under former US President Donald Trump.
YES Securities acknowledged Hindalco’s robust performance and stable cost structure, but it remained cautious due to near-term challenges in Novelis. The firm gave the stock a ‘Neutral’ rating with a revised target price of ₹721, based on the sum-of-the-parts (SoTP) valuation method.
On the other hand, Motilal Oswal Financial Services maintained a more optimistic view. It increased its EBITDA projections by 3% and 2% for FY26 and FY27, respectively. Motilal highlighted that the stock trades attractively at 5x EV/EBITDA and 1.2x Price-to-Book for FY27. The firm reiterated its ‘Buy’ call, setting a higher SoTP-based target price of ₹790.
Also Read: Hindalco Share Price Target 2025 to 2030
What Should Investors Do
Hindalco has posted strong Q4 numbers, especially in its core aluminium business, with improving profit margins and consistent operational performance. While the domestic outlook remains positive, investors should be cautious about global developments, particularly in the US, where Novelis might face policy-related challenges.
For long-term investors, the stock offers good value, especially with rising EBITDA and better price-to-book valuation. However, short-term investors may prefer to wait and watch how global factors play out before making fresh entries.
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