Fundamental and technical analysis
Hindalco industries ltd.
Submitted to- submitted by- Dr. sandeep vij Mehraj Udin Company’s profile
Hindalco is an industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location. Established in 1958, Hindalco commissioned aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products.The acquisition of Novelis Inc. in 2007 positioned Hindalco among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today Hindalco is a metals powerhouse with high-end rolling capabilities and a global footprint in 12 countries. Consolidated turnover of USD 13 billion (60,000 cr.) places Hindalco in the Fortune 500 league. Hindalco is one of the leading producers of aluminium and copper. Its aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. Its copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. Hidalco’s units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. They have been accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Our copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation.
There are two techniques for choosing a company’s share.
1)FUNDAMENTAL ANALYSIS- It is the examination of the underlying forces that affect the well-being of the company, industry groups and companies. It requires an examination of the market from a broader perspective. At the company level, fundamental analysis may involve examination of financial data, management, business concept and competition. At the industry level their might be an examination of supply and demand forces of the products. For the national economy fundamental analysis might focus on economic data to assess the present and future growth of the economy. Approaches of fundamental analysis
There are two approaches to conducting fundamental analysis:- 1. Top-down approach: In this approach firstly we do the economic analysis then industry analysis and finally company analysis. 2. Bottom-up approach: In this approach, an analyst do the company analysis first and then the industry analysis and finally economic analysis of India.
TOP DOWN APPROACH SELECTED
ECONOMIC ANALYSIS of INDIAN INDUSTRY–
The economy of India is eleventh largest economy in the world by nominal GDP and the fourth largest by purchasing power parity (PPP). Generally, economic analysis implies the examination of GDP, government financing, government borrowing, consumer durable goods market, nondurable goods and capital goods market, savings and investment pattern, interest rates, inflation rates, tax structure, foreign direct investment and money supply. •India is the second fastest growing economy in the world. •India’s economy grew by 7.4% which is an upward revision from earlier estimates...