History of Hindalco Ltd:

Hindalco Limited (also known as the Hindustan Aluminum Corporation Limited) was established in the year 1958 by the Aditya Birla Group. The company is the premier company of the group, and in 1962 Hindalco formally began its operations in Uttar Pradesh, manufacturing aluminum metal and alumina. In 1989, the company changed its name to Hindalco and focussed on the manufacture of copper and aluminum to become a leader in the non-ferrous metals industry.

With the acquisition of Novelis in 2007 the company entered into alliance and partnerships with global companies cementing its position as a worldwide leader in aluminum rolling. The copper smelting facility of the company in India is the world's largest copper smelter at a single location, one of many distinctions that characterize the company's growth.

With the objective of expanding their manufacturing capabilities, the company bought Indal and Mt Gordon mines in Australia, merging Hindalco' copper business with overseas arms. The company is also searching investment options in South Korea and other parts of Asia through Novelis and has increased investment in research and development in the non-ferrous metals mining and manufacturing segment.

Information About Hindalco:

Hindalco Limited is a leading aluminum and alumina manufacturing company based in Mumbai. The company is the biggest producer of rolling aluminum in Asia and is also a leading copper smelting company. The company manufactures rolled as well as extruded aluminum products at dedicated plants across the country. Aluminum foil and packaging are also among the company's essential products. In the copper business, the company produces copper cathodes as well as copper rods for various purposes, in addition to precious metals such as gold and silver.

Management of Hindalco Ltd:

Mr. Kumar Mangalam Birla- Chairman

Mr. Birla is the Chairman of the Aditya Birla Group and all subsidiaries, Hindalco being one of them. An alumnus of the Mumbai University, he has also earned an MBA from the London Business School. As a Chairman of the ABG, he has taken the companies to new heights. The company has expanded its scope of operations, setting up plants in Egypt, Australia, China, and Thailand.

Along with his duties at Aditya Birla, he has also been the Chairman of the Securities and Exchanges Board of India (SEBI) on Corporate Governance. He has taken several social welfare initiatives at various levels in the organization which implies him a champion of corporate social responsibility.

Mr. Satish Pai – MD

Mr. Pai has served as the Managing Director of Hindalco Industries since August 2016. He was appointed the CEO of the company in August 2013 and after that elevated to the post of Deputy Managing Director in February 2014. Previously associated with Schlumberger for over 20 years, he handled global operations for the company. At present, Mr. Pai serves on the boards of Hindalco Industries and ABB Zurich. Mr. Pai received his Bachelor's Degree in Mechanical Engineering from the Indian Institute of Technology, Madras.

Hindalco Stock Trends in 2018:

Hindalco stock price on January 1, 2018, on NSE and BSE, was Rs.273. The month of January did not witness any significant fluctuations in share price. The closing price by month end in NSE was Rs.256.15. The opening price at the start of February was Rs.257.80 on NSE and BSE. The closing price on February 28, 2018, was Rs.245.40.

Company's Wealth and Recent Performance:

The company's revenue from operations for the third quarter was Rs.11,023 crore, owing to higher volumes, robust operational performance, macro factors and by-product realization. After comparing this metric to the third quarter of FY17, there has been a growth of more than 10% in revenues.

EBITDA for the quarter was up by 15% year-on-year to Rs.1,611 crore.

Hindalco's standalone profit before tax stood at Rs.746 crore for the September-December quarter, which is a 62% increase over the same period last year. This growth was primarily driven by better financial performance across all its businesses. The net profit for the quarter was reported to be Rs.376 crore, in comparison to Rs.320 crore in the same period the previous year.

Over the course of last quarter, the company shifted its focus on boosting production at Utkal Alumina and Copper Rod Mill, which played a crucial role in promoting company's financial performance this quarter. Considering sector-wise performance, aluminum EBITDA was up by 7% y-oy while copper EBITDA increased by 28% y-oy.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.


The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.


Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.