Best Aluminium Stocks in India: Aluminium is a highly versatile metal that is valued for its lightness, corrosion resistance, and adaptability. It is used in a wide range of industries, from aerospace and automotive to construction and packaging.
As demand for this metal grows worldwide, investing in stocks related to aluminium presents a promising opportunity. In this article, we will highlight the Best Aluminium Stocks in India that are available for investment.
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Aluminium Industry – Overview
The Aluminium industry followed by iron and steel, constitutes the second-largest metal market in the world, in terms of volumes. The aluminium industry includes the extraction of ore (bauxite) and primary and secondary metal processing.
It is predicted that the demand for aluminium in India will substantially increase in the coming years due to high projected GDP growth. This boost in the consumption of the metal in the country will be led by various government initiatives, 100% rural electrification, Housing for All, Smart Cities, National infrastructure pipeline of Rs 100 lakh Crore, renewable energy and FAME (Faster adoption of manufacturing of Hybrid and EV) schemes for electric vehicles.
During FY21, India produced a combined aluminium (primary and secondary) of 4.1 MT per annum making it the second-largest aluminium producer in the world.
Best Aluminium Stocks in India
Let us take a look at a few of the best Aluminium Stocks in India and learn about business along with financial position
Best Aluminium Stocks in India #1 – National Aluminium Company
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹93.6 | Market Cap | ₹ 17,185 Cr |
| EPS | 6.59 | Stock P/E | 15.06 |
| RoCE | 14.47 % | RoE | 11.17 % |
| Promoter Holding | 51.28% | Price To Book Value | 1.35 |
| Debt to Equity | NIL | 4 Yrs Revenue CAGR | 5.52 % |
| Net Profit Margin | 10.06 % | Operating Profit Margin | 17.11 % |
NALCO, or National Aluminium Company Limited, is a highly regarded Schedule ‘A’ Navratna Central Public Sector Enterprise (CPSE) that was established in 1981 and is based in Bhubaneswar, India.
This is one of the country’s largest Bauxite-Alumina-Aluminium-Power complexes, and it has been profitable for 36 years. For the second year in succession, the business produced 4.6 lakh tonnes of aluminium at full capacity, with all 960 POTs in operation, during the fiscal year 2022-23.
NALCO operates a 68.25 lakh TPA Bauxite Mine and a 21.00 lakh TPA Alumina Refinery situated in Damanjodi, Koraput district, Odisha, along with a 4.60 lakh TPA Aluminium Smelter and a 1200MW Captive Power Plant in Angul, Odisha.
NALCO efficiently services domestic clients with regional sales offices in Delhi, Kolkata, Mumbai, and Chennai, as well as 8 active stockyards around the country. Furthermore, the company has its own bulk shipment facility, which facilitates product exports, making it one of India’s leading CPSEs in terms of foreign exchange earnings.
If we take a glance at the financials of the company, we can see that it has a net revenue of ₹14,254.86 Crores and a net profit of ₹1,434.66 Crores. Over the past four years, the company’s sales grew at a rate of 5.52%, indicating steady progress. However, the profit declined with a -4.62% CAGR during the same period
The Roe and Roce of the company stand at 11.17 % and 14.47% respectively. These figures suggest that the company’s use of its resources is moderate. Notably, the company maintains a debt-to-equity ratio of zero, signifying its reliance on internal funds for operations.
Best Aluminium Stocks in India #2 – Hindalco Industries
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 469.5 | Market Cap | ₹ 1,07,540 Cr |
| EPS | 37.52 | Stock P/E | 13.27 |
| RoCE | 11.16 % | RoE | 11.65 % |
| Promoter Holding | 34.64% | Price To Book Value | 1.15 |
| Debt to Equity | 0.67 | 4 Yrs Revenue CAGR | 14.35 % |
| Net Profit Margin | 4.52 % | Operating Profit Margin | 10.13 % |
Hindalco Industries Limited is the metals flagship firm of Aditya Birla Group. It is one of Asia’s top producers of primary aluminium, a global leader in flat-rolled products, and the world’s largest recycler of aluminium, through its subsidiary Novelis.
It is the largest downstream aluminium player in India, offering tailored solutions in flat rolled goods and extruded aluminium solutions. It is also India’s largest copper producer, accounting for a sizable portion of the country’s domestic refined copper consumption.
It serves various sectors, including aerospace, defence, construction, electronics, automotive, packaging, pharmaceuticals, EVs, renewables, refractories, and ceramics.
Currently, the company’s global footprint spans 17 manufacturing units, 21 mining operations in India, and 33 overseas units spanning across 9 countries.
If we look at the financial performance of this company, it reported robust net revenue of ₹2,23,202 Crores and a net profit of ₹10,097 Crores in FY23. Over the past four years, their sales have grown at a CAGR of 14.35 % and their sales at a CAGR of 16.43%.
In terms of returns, the company has a RoCE of 11.16% and a RoE of 11.65%, indicating moderate utilization of its resources. When it comes to debt, its debt-to-equity ratio stands at 0.67, highlighting that the company relies majorly on its own funds to operate its business.
Best Aluminium Stocks in India #3 – Vedanta
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 224.65 | Market Cap | ₹ 8 3,655Cr |
| EPS | 23.65 | Stock P/E | 9.99 |
| RoCE | 21.29 % | RoE | 27.76 % |
| Promoter Holding | 68.11% | Price To Book Value | 2.06 |
| Debt to Equity | 2.04 | 4 Yrs Revenue CAGR | 12.47 % |
| Net Profit Margin | 9.85 % | Operating Profit Margin | 23.367 % |
Vedanta Ltd (Vedanta) is a diversified metal and mining company headquartered in Mumbai, Maharashtra, India.
The company and its subsidiaries are involved in the exploration, mining, processing, and export of natural resources, as well as the power and oil and gas industries.
It is one of the world’s largest natural resource conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferroalloys, nickel, semiconductors, and glass.
It also offers support services including shipping, port services, and shipbuilding. It has operations in the Asia-Pacific, US, Europe, the Middle East, and Africa.
In FY23, the company reported a net revenue of ₹1,47,308 Crores and a net profit of ₹14,506 Crores. However, despite the increase in revenue, the net profit falls short compared to the previous fiscal year. The company has achieved a 4-year CAGR sales growth rate of 12.47% and a profit growth rate of 10.59%.
In terms of efficiency, the company shows a good performance with a RoE of 27.76% and a RoCE of 21.29%. These figures indicate that the company is making efficient use of its resources. However, the company’s high debt-to-equity ratio of 2.04, signals a substantial level of leverage within the company.
To add to the concerns of debt, the promoters have also pledged 99.9% of the stake they hold in the company.
Best Aluminium Stocks in India #4 – Maan
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 87.25 | Market Cap | ₹ 483.3 Cr |
| EPS | 9.56 | Stock P/E | 10.33 |
| RoCE | 43 % | RoE | 46.56 % |
| Promoter Holding | 65.38% | Price To Book Value | 3.47 |
| Debt to Equity | 0.42 | 4 Yrs Revenue CAGR | 5.70% |
| Net Profit Margin | 6.14 % | Operating Profit Margin | 8.76 % |
Maan Aluminium Limited was founded in 1989 as Maan Aluminium Limited. The company was renamed Maan Aluminium Ltd in 2009.
The company began by manufacturing aluminium extrusions and began commercial operations in under eleven months. Today, it is one of the leading manufacturers and exporters of aluminium-extruded products from central India.
The company’s products are used in a wide range of industries, including construction, consumer durables, transportation, and electrical and electronics.
In present times, many companies worldwide prefer this company’s products. Additionally, they are accredited with One Star export house status and export their products globally.
Taking a look at the company’s financials for FY23, it reported a net revenue of ₹813.85 Crores and a net profit of ₹49.97 Crores. Over the past four years, the company has seen impressive growth with a 4-year CAGR of 5.7% in sales and a remarkable 52.79% in profit.
In terms of efficiency, the company demonstrates strong performance with a RoCE of 43% and a RoE of 46.56%, which are the highest among the list and signify an exceptionally effective use of company resources. Additionally, the company maintains a low debt-to-equity ratio of 0.42, indicating a reliance on its own funds to operate its business.
Best Aluminium Stocks in India #5 – MMP Industries
| Particulars | Figures | Particulars | Figures |
|---|---|---|---|
| CMP | ₹ 229.5 | Market Cap | ₹ 571.56 Cr |
| EPS | 8.39 | Stock P/E | 22.89 |
| RoCE | 9.96% | RoE | 8.22% |
| Promoter Holding | 74.48% | Price To Book Value | 2.20 |
| Debt to Equity | 0.25 | 4 Yrs Revenue CAGR | 16.57% |
| Net Profit Margin | 3.43 | Operating Profit Margin | 5.38 |
MMP Industries Limited was established in 1981 and has more than 40 years of expertise in the aluminium business. It is engaged in the manufacturing of aluminium products at locations in and around Nagpur in the state of Maharashtra.
The company offers a diverse product range, including pyro and flake aluminium powders, atomized aluminium powders, aluminium foils, pastes, conductors, and cables. It serves various industries such as construction, power, telecommunications, electronics, and packaging.
Furthermore, it has entered a joint venture with Toyo Aluminium K.K. of Japan, Toyal MMP India Private Limited (TMI), to manufacture special grades of aluminium paste.
In the fiscal year 2023, the company recorded a total revenue of ₹538.87 Crores, accompanied by a net profit of ₹21.32 Crores. Over the past four years, the company has achieved impressive sales growth with a 4-year CAGR of 16.57%, but the profits have hardly increased by 0.91%
While the company’s RoE and RoCE are somewhat below average at 8.22% and 9.96%, respectively, it has effectively kept its debt in check, resulting in a low debt-to-equity ratio of 0.25.
List of Aluminium Stocks in India
| Company Name | CMP | MCap (Cr) |
|---|---|---|
| Hindalco Industries Ltd. | ₹ 469.15 | ₹ 1,07,540 |
| Vedanta Ltd | ₹ 224.5 | ₹ 83,655 |
| National Aluminium Company Ltd. | ₹ 93.75 | ₹ 17,185 |
| Hardwyn India Ltd. | ₹ 39.1 | ₹ 1,373.9 |
| MMP Industries Ltd. | ₹ 229.5 | ₹ 571.56 |
| Maan Aluminium Ltd. | ₹ 87.25 | ₹ 483.3 |
| Euro Panel Products Ltd. | ₹ 142.8 | ₹ 350.11 |
| Manaksia Aluminium Company Ltd. | ₹ 26.95 | ₹ 183.3 |
| Century Extrusions Ltd. | ₹ 18.65 | ₹ 155.28 |
| Baheti Recycling Industries Ltd. | ₹ 148.75 | ₹ 154.49 |
In Closing
In this article, we looked at the Best Aluminium Stocks in India. If you are looking to invest in Aluminium Companies in India, you should keep a close watch on all Aluminium companies besides the five mentioned above.
It should be noted that the selection of these stocks is based on specific criteria, and not all factors have been considered. Therefore, it is recommended that investors make their investment decisions based on their own analysis and judgment.
Written By Aaron Vas
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