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NALCO shares climb 3% after Macquarie raises target price

Macquarie feels NALCO is the best play on alumina and maintained Outperform call on the stock with increased target price to Rs 87 from Rs 82 per share.

September 25, 2018 / 12:41 PM IST
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National Aluminium Company (NALCO) share price rallied 2.8 percent intraday Tuesday after global brokerage house Macquarie raised target price on the stock.

The stock price was quoting at Rs 66.60, up Rs 1.75, or 2.70 percent on the BSE, at 12:20 hours IST.

Macquarie has upgraded alumina prices by 25-37 percent for FY19-20. "Higher alumina and weaker rupee lead to 25-41 percent EPS for FY19-21," the research house said.

It feels the company is the best play on alumina and maintained Outperform call on the stock with increased target price to Rs 87 from Rs 82 per share.

Meanwhile, Tapan Kumar Chand, Chairman & MD of the company in his annual report speech said during the year 2018, global alumina market will experience short supply of around 0.7 million tonne due to multiple factors like production cut in China, demand pick up of smelters in China as well as Middle East, 30 percent drop in Brazilian export, etc.

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Thus the prices of alumina in 2018 will remain firm, he feels.

He said the global Aluminium production in 2018 is expected to be 66.2 million tonne as against the global demand of 66.5 million tonne with the market being deficit by 0.3 million tonne.

The global production and consumption in 2018 will be affected by a number of factors such as the US sanctions against Rusal, US import tariffs, Blue Sky policy & quota replacement policy in China, possible trade wars between US & China and US & other countries, etc, he feels.
Moneycontrol News
first published: Sep 25, 2018 12:40 pm

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