Hindalco vs Vedanta: Which metal stock should you pick for long term?

Factors driving metals market:

The metals market has been strong due to positive PMI data from China and solid US economic fundamentals. This has led to very higher commodity prices, especially for base metals.

Supply constraints in copper and aluminium, along with a ban on Russian metal, have also boosted metal prices as well. 

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Stock price trends:

Vedanta has performed better than the Nifty Metal benchmark this year, with a 61% increase compared to Hindalco's 5%.

Vedanta showed positive returns in 3 out of 4 months so far this year, while Hindalco was positive in 2 months. In April, Vedanta surged 46.46%, while Hindalco gained 15%.

Long-Term performance:

Over the past year, Vedanta has risen by around 50%, while Hindalco has rallied 45%.Both companies hit their 52-week highs recently.

In the March quarter, Vedanta's net profit declined by 27% due to finance costs and weak metal prices.

Hindalco's March quarter results haven't been reported yet, but in the December quarter, its net profit grew by 71%.

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Expert opinions:

Analysts like Hindalco for its strategic focus on downstream initiatives and alignment with futuristic sectors.

Some experts prefer Vedanta due to its diversified portfolio and potential demerger, though it faces debt obligations as well.

We recommend investors to approach with experts before investing in any companies.