Lowest-cost aluminium in a deficit
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Vedanta Aluminium Metal | Held | - | 49.39% | 1.66 L Cr | Lowest-cost aluminium in a deficit | |
| Hindalco | Not held | n/a | n/a | n/a | Hindalco (11.0x, ROE 13%, Rs 99,165 cr borrowings) is diluted by Novelis' US rolling business and a Rs 1 lakh cr capex pipeline; VAML is a pure upstream play with 50% EBITDA margins, faster deleveraging and higher dividend payout. | Screener · Tijori |
| NALCO | Not held | n/a | n/a | n/a | NALCO (9.9x, ROE 29%, debt-free, 3.1% yield) is cheaper and cleaner, but has no smelter growth (capacity flat) and is a PSU; VAML offers 9% volume CAGR to FY28, cost reduction to <$1,600/t and a larger scale (2.7 vs ~0.46 mn t). | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
Hindalco is 60% Novelis (US rolling, tariff and auto-cycle exposure) and trades at a similar multiple; NALCO is the cheapest but is a PSU with an alumina-price, not metal, earnings driver and a capacity-addition record that is slow. We own no steel: the China export overhang and the domestic capacity race make it the wrong metal for a deficit thesis.
All sectors we avoid or underweight →Vedanta Aluminium Metal (2.2%, Core): India's largest and lowest-cost primary aluminium producer (2.6–2.7 mt of FY27 production, captive alumina and coal), demerged and listed in June 2026 — a pure play with a cleaner balance sheet than its parent.