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Greenfield Projects
Posted by :
BAZEEGAR
NALCO has also planed a greenfield projects where mines & refinery complex is being planned in Andhra
Pradesh. The bauxite mines capacity will be 4.20 MT, while the refinery will have a capacity of 1.40 MT. The
project will involve an investment of Rs 70 bn. Whereas, a smelter & power complex has been planned at
Jharsuguda district in Orissa with an investment of Rs 85 bn. This project envisages a smelter of 0.50 MT capacity
and a power plant of 1,260 MW capacity...
Ambitious Growth Plans
Posted by : BAZEEGAR
The company has embarked a very ambitious expansion plan worth Rs 400 bn. These include smelter and power
projects in Indonesia and Iran, apart from brownfield and greenfield projects within the country.
Brownfield Expansions
NALCO is increasing its fully integrated aluminium making capacity with an investment of more than Rs 50 bn,
which is scheduled to be completed by Q1FY2010. The company is also planning to increase its aluminium and
power plant capacity to 0.58 MT and 1,400 MW in the next phase with an estimated cost of Rs 60 bn....
FY09 Result Highlights
Posted by : BAZEEGAR
A sizeable 15% slump in LME aluminium prices was offset by 14% INR depreciation, lower excise and stable
volume, thus ensured 8% YoY surge in net sales to Rs 51,081 mn.
Large proportion of outside coal with higher prices and higher employee cost led to colossal decline in EBITDA
margin from 50.2% to 35.3% during the year and therefore EBITDA registered significant decline of 24% YoY to Rs
18,040 mn.
Modest decline in other income due to deployment of cash along with lower EBITDA ensured 24% YoY decline in
PAT to Rs 12,723 mn.
The company reported flat production for bauxite, alumina, aluminium and power at 4.70 MT, 1.58 MT, 0.36 MT
and 5,541 MU respectively during the year. The sales volume also remained same for alumina and aluminium at
0.89 MT and 0.35 MT respectively during the year.
During turbulent time, NALCO has focused on value added product to increase its realization and therefore it
achieved highest ever sale of rolled products of 14,042 tonne compare to 9,423 tonne, domestic billet sale of 21,799
tonne compare to 16,826 tonne and domestic wire rod sale of 72,587 tonne compare to 68,179 tonne during last
year....
Valuation
Posted by : BAZEEGAR
The company is trading at P/E of 27.1x and 17.5x for FY10E and
FY11E earning respectively, while it is trading at 14.3x and 8.7x for
FY10E and FY11E EV/EBITDA respectively. We are retaining our
‘SELL’ rating in view of sky-high valuation; however, we have
upgrade our target price to Rs 268/share from Rs 165/share (6x FY11
EV/EBITDA) considering higher volume and better price realization.
Nonetheless, stock may find support at current prices in near term, as
NALCO would be one of the prime candidate for disinvestments....
4QFY09 Result Highlights
Posted by : BAZEEGAR
A massive 50% YoY decline in LME aluminium prices was
partially offset by 25% INR depreciation and higher volume,
therefore resulted in 7% YoY decline in net sales to Rs 10,885 mn.
The company performance remained remarkable sequentially as
it achieved 75% growth in alumina and 37% growth in
aluminium sales volume.
Lower realization along with rise in raw material and employee
cost hampered EBITDA margin to just 8.8% from 55.9% in
4QFY08 and therefore EBITDA registered a massive 85% YoY
declined to Rs 956 mn.
Stable rise in other income on account of high cash reserve was
not able to save the company and it reported 81% YoY decline in
net profit to Rs 830 mn.
The company reported very sharp deterioration in aluminium
EBIT margin to -17% from 39% in 4QFY08, while alumina EBIT
margin declined from 44.5% to 30.2% during the same period....
National Aluminium Co Ltd
Posted by : BAZEEGAR
NALCO reported better performance compare to our estimates owing
to surprise on volume front. Nevertheless, profit number was similar
compare to our estimate due to substantial increase in employee cost
number as a result of sixth pay commission provision. Despite, better
performance, the company reported lowest quarterly profit in last
decade and there seems to be no respite in near future since current
LME aluminium price remains very near to the cost of production of
the company. Aluminium has been one of the weakest metal on LME
due to very sharp surge in inventory to the tune of four times in last
one year....
4QFY09 Result Update - Target: INR 268 SELL
Posted by : BAZEEGAR
Sector View NEGATIVE
Company Risk LOW
BSE Code 532234
NSE Code NATIONALUM
Bloomberg Code NACL DOT IN
Reuters NALU DOT BO
52 Wk High/Low (INR) 544 / 108
Equity (INR Mn) 6,443
Market Cap. (INR Mn) 229,371
Shareholding Pattern (%)
Foreign 3.67
Institutions 5.48
Corporate 3.01
Government 87.15
Public & Others 0.69...
NSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on June 03, 2009 have recommended for payment of total dividend @50% i.e. Rs 5/- per share (including 35% interim dividend already paid) on the paid-up equity share capital of the Company subject to the approval of shareholders in the ensuing Annual General Meeting....
NSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2009 as follows: Net Sales of Rs. 510806 lacs for year ending on 31-MAR-2009 against Rs. 498880 lacs for the year ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 127227 lacs for the year ending on 31-MAR-2009 against Rs. 163152 lacs for the year ending on 31-MAR-2008....
NSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2009 as follows: Net Sales of Rs. 108846 lacs for quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 8302 lacs for the quarter ending on 31-MAR-2009....
BSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Ltd (NALCO) has informed BSE that the Board of Directors of the Company at its meeting held on June 03, 2009, inter alia, have recommended for payment of total dividend @ 50% (including 35% interim dividend already paid) on the paid-up equity share capital of the Company subject to the approval of shareholders in the ensuing 28th Annual General Meeting....
BSE Announcements on NALCO
Posted by : MMB Messenger
National Aluminium Company Ltd (NALCO) has announced the following Audited results for the quarter & year ended March 31, 2009:
The results for the Quarter ended March 31, 2009
The Company has posted a net profit of Rs 830.20 million for the quarter ended March 31, 2009 as compared to Rs 4466.60 million for the quarter ended March 31, 2008. Total Income has decreased from Rs 12962.30 million for the quarter ended March 31, 2008 to Rs 12334.90 million for the quarter ended March 31, 2009.
The results for the Year ended March 31, 2009
The Company has posted a net profit of Rs 12722.70 million for the year ended March 31, 2009 as compared to Rs 16315.20 million for the year ended March 31, 2008. Total Income has increased from Rs 55756.50 million for the year ended March 31, 2008 to Rs 56309.10 million for the year ended March 31, 2009....
BSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Ltd (NALCO) has informed BSE that a meeting of the Board of Directors of the Company will be held on June 03, 2009, inter alia, to consider the audited financial results of the Company for the year ended March 31, 2009 and to consider declaration of final dividend, if any....
NSE Announcements on NALCO
Posted by : MMB MessengerNational Aluminium Company Limited has informed the Exchange that Shri A.K. Sharma has been appointed as Director(Production) of the Company with effect from May 01, 2009 vide Order No.2(1)/2007 -Met.I dated Feb 11, 2009 of Ministry of Mines, Government of India....
NALCO - Trading range for May
Posted by :
sudhirmahajannational aluminium is a dummy stock. don`t enter. target 170...
