Fundamental Analysis

NATIONAL ALUMINIUM COMPANY 

Ticker : 532234
BUY: ₹ 112.05
Target: ₹ 128

National Aluminium Company Limited (NALCO) is a Schedule ‘A’ Navratna CPSE and one of the largest integrated bauxite-alumina-aluminium-power complexes in the country. On a consolidated basis, the company recorded net sales and other operating income of Rs 3,773.26 crore, higher by 58.62 per cent against Rs 2,378.79 crore reported in Q3FY21. The operating profit was recorded at Rs 1,262.51 crore in Q3FY22, a robust rise as compared to an operating profit of Rs 470.03 crore in Q3FY21. Q3FY22 recorded a net profit of Rs 830.86 crore in comparison with a net profit of Rs 239.81 crore in Q3FY21, giving a significant rise. The results were driven by the sustained supply of raw material, optimised production, strategic sourcing of power, particularly during the period of coal crisis, better realisation and effective capacity utilisation of its operational units. Despite the challenging circumstances due to the pandemic, the company has displayed resilient performance to record robust growth on the sales and production fronts. Hence, we recommend BUY.