Buy Nalco; target of Rs 41: Motilal Oswal
Motilal Oswal is bullish on Nalco recommended buy rating on the stock with a target price of Rs 41 in its research report dated November 12, 2020.
November 13, 2020 / 03:11 PM IST
Motilal Oswal 's research report on Nalco
Nalco's (NACL) 2QFY21 higher-than-expected EBITDA at INR2.8b (v/s est. INR2.2b) and volumes were a surprise once again. EBITDA continues to strengthen due to LME recovery and lower input commodity costs. We raise our FY21/FY22E EBITDA estimates by 36%/28% to factor in the recovery in LME prices. Maintain Buy.
We value the stock at 5.5x FY22E EV/EBITDA to arrive at TP of INR41. Maintain Buy.
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