Hindalco Industries Limited (HINDALCO.NS) stock analysis

In our weekly check, Hindalco Industries Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.

About Hindalco Industries Limited

Hindalco Industries Limited is a Basic Materials company (Aluminum) based in India, listed on NSE as HINDALCO.NS.

What our checks show for HINDALCO.NS

Red flags

• The gross margin fell by 6.4 points, to 27.2%: costs are rising faster than prices.
• Operating cash flow is only 0.41x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-7.9% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 1.5 points over 5 years, to 5.5%: the company keeps less of each sale as profit.
• The net margin is only 5.5%: little room if costs rise.
• Recovering from its deepest fall took about 1.6 years.

Strengths

• Debt is low: 0x equity.
• Operating profit covers interest 8.7 times over.
• Analysts expect earnings per share to grow about 21.9% a year over the next years.
• Earnings per share grew 17.6% a year over the last 3 years.
• Net profit grew 17.5% a year over the last 3 years.
• The dividend takes 7% of profit: there is a cushion.

Next earnings report: 2026-11-06

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Questions

What grade does Hindalco Industries Limited (HINDALCO.NS) have?

In our weekly check, Hindalco Industries Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HINDALCO.NS stock?

This week's biggest flags for Hindalco Industries Limited: Gross margin falling, Profits not backed by cash, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does Hindalco Industries Limited do?

Hindalco Industries Limited is a Basic Materials company (Aluminum) based in India, listed on NSE as HINDALCO.NS.

When does Hindalco Industries Limited report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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