Hindalco share price: Should you buy, hold or sell post Q4 results, dividend announcement?

Stock Market Today: Hindalco share price was rangebound in the morning session on Wednesday, following the announcement of its March quarter results (Q4) and a dividend by the company. 

During the trade, Hindalco stock hit the day's high of ₹671.50 and a low of ₹655. As of 11.40 am, the metal company's stock was trading 0.10% lower at ₹662.05. Analysts, meanwhile, remain split on the stock post the earnings announcement.

Hindalco Q4 results

Hindalco Industries on Tuesday announced that its consolidated net profit for the March quarter increased by 66% to ₹5,283 crore from ₹3,174 crore during the same period last year.

Revenues from operations in Q4FY25 stood at ₹64,890 crore, about 16% higher than the ₹55,994 crore recorded in the same quarter of the previous fiscal year.

The upstream operations in the aluminium business lifted the show. In comparison to the same quarter previous year, the fourth quarter's consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 43% to ₹10,296 crore.

Hindalco share price: Analyst Views

Analysts, while positive on the domestic aluminum business (both upstream and downstream), are watchful of its US subsidiary Novelis' performance in the wake of US President Donald Trump's tariff announcements.

YES Securities post Q4 results said that the downstream capacities are ramping up, but near-term headwinds persist for Novelis, leading them to assign a ‘Neutral’ rating on the stock.

Hindalco delivered a strong Q4FY25 performance, surpassing consensus expectations, which, as per YES Securities, were driven by firm aluminium and copper prices, a supportive macro environment, and a largely stable cost structure on a sequential basis. “With the upstream aluminium segment posting a strong EBITDA/tonne of $1,684, up from $1,480 in Q3FY25 and much higher than $967 in Q4FY24, the Indian aluminium business for Hindalco continues to reach new operational milestones,” it said.

Sequential improvement was also seen in the downstream aluminium business, where EBITDA/tonne increased from $179 in the prior quarter to $240. The brokerage values Hindalco on a SOTP basis to arrive at a revised target price of ₹721/share.

Motilal Oswal Financial Services expects a healthy consolidated performance for FY26 or 27, mainly driven by the strong domestic operations. This prompted the brokerage to raise its EBITDA estimates for FY26 and FY27 by 3% and 2%, respectively. The stock, as per MOFSL, trades at 5 times enterprise value by EBITDA and 1.2 times Price-to-Book value on FY27 estimates. It reiterated a ‘Buy’ rating on Hindalco with a revised SoTP-based target price of ₹790.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.