Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is a leading player in the metals industry, producing aluminum and copper. It is primarily involved in the production of aluminum and copper, making it one of the leading players in the non-ferrous metals industry in India and globally. As an investor, understanding the Hindalco share price is vital, as it can provide valuable insights into the company’s financial health, market sentiment, and potential growth prospects. In this article we will discuss Hindalco Industries Share Price Target for 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030.
Table of Contents
Business model of Hindalco Industries
Hindalco Industries follows a business model that revolves around the production and distribution of aluminum and copper products, as well as related activities. Here’s an overview of Hindalco’s business model:
- Raw Material Sourcing: Hindalco begins its business model with the acquisition of raw materials, primarily bauxite for aluminum and copper concentrates for copper production. These raw materials are sourced from various locations, including mines owned by the company and external suppliers.
- Mining and Refining: The company is involved in the mining and refining of bauxite to produce alumina, which is a key intermediate product in aluminum production. For copper, it processes copper concentrates to obtain refined copper and other by-products.
- Primary Metal Production: Hindalco produces primary metals, such as aluminum ingots and copper cathodes, through smelting and casting processes. These primary metals serve as the foundation for various downstream products.
- Value-Added Products: Hindalco manufactures a wide range of value-added products from aluminum and copper. These include rolled products (like sheets and foils), extrusions (used in various applications including construction and transportation), and specialty products tailored to meet specific customer needs.
- Distribution and Sales: The company distributes its products both domestically and internationally. It has an extensive network of dealers, distributors, and agents to reach customers across various industries, including automotive, construction, packaging, and more.
- Vertical Integration: Hindalco’s business model is characterized by vertical integration, meaning it controls multiple stages of the supply chain, from mining and refining to manufacturing and distribution. This integration allows the company to optimize costs and quality throughout the process.
- Research and Development: Research and innovation play a vital role in Hindalco’s business model. The company invests in R&D to develop new alloys, technologies, and applications for aluminum and copper, ensuring its products remain competitive and relevant.
- Global Expansion: Hindalco has expanded its operations beyond India and has a global footprint. This expansion helps the company tap into international markets and diversify its customer base.
Shareholding of Hindalco Industries
As of June 2023, Shareholding of Hindalco are as –
- Promotors- 34.64%.
- Foreign Institution- 26.25%.
- Retails & Others- 14.55%.
- Other Domestic Institutions – 13.43%.
- Mutual Funds- 11.13%.
Hindalco Industries Share
Hindalco is listed on the National Stock Exchange and the Bombay Stock Exchange and has a large number of shareholders. Promotors holds the majority stake in the company.
As of 22 August, 2023, Hindalco share price on the NSE was INR 452/-, Hindalco Share 52 week high at Rs. 504/- & 52 week low Rs. 358/-. P/E ratio is 11.93 & Dividend Yield is 0.66.
| Company Name | Hindalco Industries |
| Share Name | HINDALCO |
| Sector | Steel Manufacturing |
| Headquater | Mumbai |
| Foundation | 1958 |
| Key Person | Kumar Mangalam Birla (Chairperson) |
| Market Cap | 1,01,586 Crores Rs. |
| Revenue | 77,464 Crore Rs |
| Official Website | Click Here |
Hindalco Share Price Target 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2040, 2050
| Year | First Target | Second Target |
| 2023 | 480 | 505 |
| 2024 | 518 | 540 |
| 2025 | 560 | 595 |
| 2026 | 625 | 680 |
| 2027 | 710 | 775 |
| 2028 | 805 | 890 |
| 2029 | 920 | 995 |
| 2030 | 1015 | 1105 |
| 2040 | 1850 | 1920 |
| 2050 | 3400 | 3540 |
Note:- “That these share price targets for “Hindalco Share” are only provided for the purpose of reference and that this prediction will only hold true in the event that there is optimism in the market. Any uncertainties regarding the company or the current state of the global market will not be addressed in this analysis.”
Annual Result Summary of Hindalco Industries
Annual result summary of Hindalco :
- Net profit: ₹2,249 crore (up 20.2% YoY)
- Revenue: ₹68,028 crore (up 35.5% YoY)
- EBITDA: ₹8,875 crore (up 38.1% YoY)
- PAT: ₹3,369 crore (up 27.4% YoY)
- EBITDA margin: 13.1% (up 3.3% YoY)
- PAT margin: 5.0% (up 1.2% YoY)
- Cash flow from operations: ₹6,940 crore (up 51.4% YoY)
- Capex: ₹4,600 crore (down 25.8% YoY)
- Dividend: ₹3.5 per share (125% of face value)
Last 5 Year History of Hindalco Share
In Last 5 year Hindalco Share give 103% returns to its Investors.
| Year | Share Price |
| Aug- 2018 | 222.40 |
| Aug- 2019 | 180.10 |
| Aug- 2020 | 193.70 |
| Aug- 2021 | 403.70 |
| Aug- 2022 | 439.90 |
Hindalco Industries Share Price Target 2023
The company’s performance was driven by strong demand for aluminum products, particularly in the packaging and construction sectors. The company also benefited from higher prices for aluminum, which averaged $2,700 per tonne in the fourth quarter of FY23.
Hindalco share price target 2023 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2023 | ₹480 | ₹505 |
Hindalco Industries Share Price Target 2024
The company’s revenue is expected to grow at a CAGR of 10%-12% in the next few years. Hindalco Industries is a leading global aluminum and copper producer. The company has operations in India, Brazil, Australia, and the United States.
Hindalco share price target 2024 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2024 | ₹518 | ₹540 |
Hindalco Industries Share Price Target 2025
In 2021, Hindalco acquired a 49% stake in Aluminium Bahrain (Alba), a leading aluminum producer in the Middle East. The acquisition gave Hindalco a strategic presence in the Middle East market.
Hindalco share price target 2025 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2025 | ₹560 | ₹595 |
Hindalco Industries Share Price Target 2026
Hindalco acquired Century Aluminum, a US-based aluminum producer. The acquisition gave Hindalco a foothold in the US market, which is the world’s largest aluminum market.
Hindalco share price target 2026 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2026 | ₹625 | ₹685 |
Hindalco Industries Share Price Target 2027
Hindalco’s commitment to quality, sustainability, and ethical business practices has earned it a strong presence in both domestic and international markets. The company’s brand is recognized for reliability and quality.
Hindalco share price target 2027 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2027 | ₹710 | ₹775 |
Hindalco Industries Share Price Target 2028
Government initiatives promoting domestic manufacturing and self-reliance in countries like India can boost demand for domestically produced metals. Hindalco stands to benefit from such policies.
Hindalco share price target 2028 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2028 | ₹805 | ₹890 |
Hindalco Industries Share Price Target 2029
Hindalco invests in research and development to enhance its product offerings and production processes continually. This commitment to innovation allows the company to stay competitive in an evolving market, producing high-quality, value-added products that meet the changing needs of customers.
Hindalco share price target 2029 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2029 | ₹920 | ₹995 |
Hindalco Industries Share Price Target 2030
Hindalco has a presence in more than 20 countries worldwide, and its global expansion efforts are likely to continue. Expanding into new markets and regions provides the company with diversification and growth opportunities, reducing dependency on any single market.
Hindalco share price target 2030 are as follows –
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2030 | ₹1015 | ₹1105 |
Dividend History of Hindalco Share
Here is a brief overview of Hindalco Share dividend history over the past few years:
- In 2023, Company declared a final dividend of Rs. 3 per share.
- In 2022, Company declared a final dividend of Rs. 4 per share.
- In 2021, Company declared a final dividend of Rs. 3 per share.
- In 2020, Company declared a final dividend of Rs. 1 per share.
Joint Ventures & Subsidiaries of Hindalco Industies
Hindalco Industries, a prominent player in the aluminum and copper industries, has established several joint ventures and subsidiaries over the years to expand its operations and diversify its business interests. here are some notable joint ventures and subsidiaries associated with Hindalco Industries:
Joint Ventures:
- Novelis Inc.: Novelis is a global leader in aluminum rolling and recycling. It’s a subsidiary of Hindalco Industries and operates as a joint venture between Hindalco and Novelis Corporation. Novelis specializes in producing high-value-added aluminum products used in various industries, including automotive, beverage cans, and construction.
- Utkal Alumina International Limited (UAIL): UAIL is a joint venture between Hindalco and the Aluminum Corporation of China Limited (Chalco). UAIL focuses on alumina refining and has a refinery located in the Rayagada district of Odisha, India. The alumina produced is used as a key raw material for aluminum production.
Subsidiaries:
- Aditya Birla Minerals Limited: Aditya Birla Minerals, a subsidiary of Hindalco, is involved in copper mining and exploration activities in Australia. It owns and operates the Nifty Copper Mine in Western Australia, which produces copper concentrate.
- Hindalco-Almex Aerospace Limited: This subsidiary specializes in the production of aluminum extrusions for aerospace and defense applications. It caters to the demanding requirements of the aerospace industry.
- Birla Copper: Birla Copper is a unit of Hindalco Industries and is one of the leading copper manufacturers in India. It operates a copper smelter and refinery in Gujarat, producing copper cathodes and various copper products.
- Aditya Birla Chemicals: While not exclusively an aluminum or copper subsidiary, Aditya Birla Chemicals is part of the Aditya Birla Group, to which Hindalco belongs. It is involved in the manufacturing of a wide range of chemicals and products, including specialty chemicals and textiles.
- UltraTech Cement: Hindalco has a significant stake in UltraTech Cement, one of India’s largest cement manufacturers. Although this subsidiary is primarily focused on the cement industry, it adds to the diversification of the Aditya Birla Group’s business portfolio.
Latest News of Hindalco Industries
- Hindalco to invest $1 billion in green energy projects: Hindalco Industries has announced that it will invest $1 billion in green energy projects over the next five years. The company plans to set up solar and wind power projects to meet its own energy needs and also sell surplus power to the grid.
- Hindalco to expand aluminum capacity in India: Hindalco Industries has announced that it will expand its aluminum capacity in India by 300,000 tonnes per annum. The expansion will be undertaken at the company’s Mahan smelter in Madhya Pradesh.
- Hindalco to acquire stake in Brazilian bauxite mine: Hindalco Industries has announced that it will acquire a 20% stake in the Serrote mine in Brazil. The mine has a reserves of 1.2 billion tonnes of bauxite.
- Hindalco to set up copper smelter in Indonesia: Hindalco Industries has announced that it will set up a copper smelter in Indonesia. The smelter will have a capacity of 200,000 tonnes per annum.
- Hindalco to invest in research and development: Hindalco Industries has announced that it will invest Rs. 100 crore in research and development over the next five years. The company plans to focus on developing new technologies for the aluminum and copper industries.
FAQs
Yes, Hindalco is committed to sustainability and has implemented various eco-friendly practices in its operations. Investors interested in sustainable investments may find Hindalco appealing.
Like any investment, Hindalco shares come with risks. These include market volatility, industry-specific challenges, and global economic conditions. It’s essential to do thorough research before investing.
For Year 2023, target of Hindalco Share is Rs.480 to Rs.500.
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