Top Stocks Today : IIFL Securities has Buy call on National Aluminium Co - April 03

IIFL Securities recommends buying National Aluminium Co (NALCO) at the current market price of Rs 171.05. With a buy recommendation, the target price for NALCO has been set at Rs 177. The positive outlook is attributed to the company's strategic operations and favorable market conditions. NALCO is a leading producer of aluminium in India and has a strong presence in the domestic and international markets. The company's performance has been resilient amidst economic challenges, and the brokerage expects NALCO to benefit from the projected growth in the aluminium industry.

About National Aluminium Co:

National Aluminium Company Limited (NALCO), a Government of India enterprise, is the country's largest integrated aluminium producer. It has a diverse portfolio of businesses across the aluminium value chain, including mining, refining, smelting, casting, rolling, and power generation. NALCO operates two aluminium smelters at Angul and Damanjodi in Odisha with a combined capacity of 460,000 tonnes per annum, making it the largest smelter in Asia. The company also has a captive power plant, a coal block, and a bauxite mine to ensure a stable supply of raw materials and power. NALCO's products are used in various industries such as automotive, construction, packaging, and electrical. The company also exports its products to over 50 countries worldwide.

52 Week Price Trend:

National Aluminium Company (NALCO), a leading Indian aluminium producer, has exhibited a significant rise in its stock price over the past year. Its current market price (CMP) of Rs 171.05 marks a notable increase compared to its 52-week high price of Rs 169.3. This growth is attributed to factors such as strong demand for aluminium in key sectors, including transportation, packaging, and construction. Despite facing challenges like rising input costs and global economic uncertainties, NALCO's strategic initiatives and operational efficiency have contributed to its positive financial performance and market sentiment.

Stratzy's MOST Analysis:

NATIONALUM has received a BBB rating from Stratzy's MOST framework. This rating is derived from an assessment of the company's Management, Outlook, Safety, and Trend. The BBB rating indicates that NATIONALUM has medium fundamental risks, with strengths in some areas but weaknesses in others.

Company's Fundamentals:

National Aluminium Co (NSE: NATIONALUM) currently trades at a Stock PE of 18.4, indicating that investors are willing to pay Rs. 18.4 for every Re. 1 of earnings. The PB Ratio of 2.12 suggests that the company's market value is 2.12 times its book value, indicating that investors believe the company is undervalued relative to its assets. The Dividend Yield of 2.87% represents the annual dividend paid out as a percentage of the current stock price, providing investors with a steady stream of passive income. These metrics collectively provide insights into the company's valuation, financial health, and dividend-paying capacity.

Fundamental and Technical information provided in this blog were last updated on 03 Apr, 2024

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