Weekly Tactical Pick | NALCO
A higher dividend payout is likely from NALCO by August-September 2020 once savings from power costs become visible
June 26, 2020 / 03:33 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Our tactical pick for the week is NALCO (CMP: Rs 34, Market capitalization: Rs 6362 crore). The stock saw a sharp correction along with other metal stocks due to the Covid-19 outbreak.
Buying NALCO at current levels takes into account lower alumina and aluminium prices.
Aluminium prices are still 6 percent lower in the June quarter compared to the March 2020 quarter, though they have recovered from the lows seen in March and April 2020. Given NALCO’s integrated production, any upside to...