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Buy Nalco; target of Rs 50: Motilal Oswal

Motilal Oswal is bullish on Nalco has recommended buy rating on the stock with a target price of Rs 50 in its research report dated August 13, 2019.

August 14, 2019 / 01:40 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Nalco

EBITDA of INR2.1b (-59% QoQ) came in below our estimate of INR4.3b owing to higher aluminum cost of production, lower-than-expected aluminum volumes and likely lower alumina volumes. The sequential decline in EBITDA can be attributed to lower alumina/LME prices and higher cost. Adj. PAT was down 69% QoQ at ~INR1b (our estimate: INR2.6b).


We believe alumina/aluminum LME prices are close to bottom as, at the current levels, ~10% of global smelters/refiners (particularly Chinese) would be in cash losses. NACL is best placed to benefit from higher prices. We value the stock at 5x FY20E EV/EBITDA. Our TP stands at INR50/share. Maintain Buy.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 14, 2019 01:40 pm

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