Hind Aluminium Industries Limited

Basic Materials — Aluminum · NSE

₹87.02+₹0.07 (+0.08%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Hind Aluminium Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Hind Aluminium Industries Limited manufactures and sells aluminium wire rods and alloy conductors in India. It operates in two segments, Aluminium Products and Power.

IndustryAluminum

SectorBasic Materials

Employees3

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹79 reaches shareholders as profit, with ₹-13 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹2.40 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.40 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -1.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE18.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +133% while net margin moved -64% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+133%

Margin effect-64%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 8.55x is high — earnings must service borrowings before shareholders see anything
✓ Current ratio of 2.64 — short-term bills are well covered
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only -5.5x — little room if profits dip
✗ Debt has grown 56.3% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

47/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

55/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.8x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 22% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +22%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -71.3% to -12.6% over 3 years.
Return on capital is rising
ROCE has improved from -6.6% to -1.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 10.3% to 6.3% — each rupee of shareholder capital earns less than it did.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 282% over 3 years, from ₹2 Cr to ₹8 Cr.
🔴High leverageFinancial
Debt/Equity of 8.55x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -5.5x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 265% against revenue up 133% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 19.9x to -5.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -71.3% to -12.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 8.55x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 265% against revenue up 133%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 22% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 10.3% to 6.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 24% a year✓ 32.5% CAGR
Latest reported year was 405.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -15%✓ -12.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ -5.5x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ -1.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹55 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.8x

Cheap

Cheap against the generic band

P/B Ratio

0.60x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.88

Profitable

Profitable on a per-share basis

ROE

6.3%

Weak

Weak capital efficiency

ROCE

-1.3%

Weak

Low return on total capital employed

Debt/Equity

8.55x

High

High leverage

Revenue Growth (YoY)

405.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-51.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.6%

Average

Average margins

Net Margin

32.2%

Good

Strong bottom-line conversion

Current Ratio

2.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.31

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

32.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹1 Cr	₹3 Cr	₹7 Cr	+32.5%
EBITDA	-₹2 Cr	-₹4 Cr	-₹0 Cr	-₹1 Cr	—
EBITDA Margin	-71.3%	-297.5%	-16.0%	-12.6%	—
PAT (Net Profit)	₹7 Cr	₹16 Cr	₹7 Cr	₹6 Cr	-5.4%
EPS	₹10.69	₹25.37	₹11.8	₹9.05	-5.4%
ROE	10.3%	20.8%	8.8%	6.3%	—
ROCE	-6.6%	7.7%	0.4%	-1.3%	—
Total Debt	₹2 Cr	—	—	₹8 Cr	+56.3%
Free Cash Flow	-₹0 Cr	-₹3 Cr	-₹3 Cr	-₹18 Cr	—

🟢 Revenue has grown at 32.5% a year over 3 years.

🟢 EBITDA Margin has risen from -71.3% to -12.6% over 3 years (+58.7 pts).

🔴 PAT (Net Profit) has shrunk at 5.4% a year over 3 years.

🔴 EPS has shrunk at 5.4% a year over 3 years.

🔴 ROE has fallen from 10.3% to 6.3% over 3 years (-4.0 pts).

🟢 ROCE has risen from -6.6% to -1.3% over 3 years (+5.3 pts).

🔴 Total Debt has grown at 56.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹101 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹17 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.6%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

6 general

Hind Aluminium Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Hind Aluminium Industries shares admitted to NSE permitted-to-trade category

scanx.trade, 25 Aug

Hind Aluminium Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Hind Aluminium Industries Clarifies Recent Share Price Movement to BSE

scanx.trade, 30 Dec

ALUFLUOR Stock Price and Chart — NSE:ALUFLUOR

TradingView, 17 Aug

Hindalco, NALCO to Vedanta Aluminium: Aluminium stocks slide up to 6%. Here's why

Livemint, 16 Jun

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingBusiness Quality · Growth · Profitability

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑