Neutral NALCO; target of Rs 350: Motilal Oswal

Motilal Oswal recommended Neutral rating on NALCO with a target price of Rs 350 in its research report dated January 30, 2026.

Broker Research

February 02, 2026 / 15:11 IST

Neutral

Motilal Oswal's research report on NALCO

NALCO’s (NACL) 3QFY26 revenue came in line with our estimate at INR47.3b (+2% YoY and +10% QoQ), primarily driven by favorable aluminum prices. EBITDA stood at INR21.8b (-6% YoY and +13% QoQ) vs. our est. of INR23.3b. EBITDA margin was 46.1% vs. 44.9% in 2QFY26 and 49.9% in 3QFY25. Adj. PAT stood at INR15.9b (+2% YoY and +12% QoQ), in line with our est. of INR16.6b, supported by strong operating performance. In 9MFY26, revenue stood at INR128b (+11% YoY), EBITDA at INR56b (+16% YoY) and APAT at INR40.7b (+27% YoY). The board approved a second interim dividend of INR4.5 per share in 3Q.

Outlook

At CMP, NACL trades at 8.5x on EV/EBITDA and 2.7x on P/B. We reiterate our Neutral rating on the stock with a revised TP of INR350, valuing the stock at 7x EV/EBITDA on Sep’27 estimates.

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