NALCO: Fundamental Radar: 2 factors that make NALCO a good bet in the aluminium space, Shreyansh Shah explains


“We value the stock at an FY25E EV/EBITDA of 6.7x to arrive at a target of Rs 182, implying 15% upside from current market price,” said Shreyansh Shah, research analyst at Stoxbox.

Synopsis

Going forward, with the ramping up of captive coal production, it is expected that the coal cost would come down.Further, the better production and realization of alumina sales volumes in the coming quarter will help the company to improve its profitability.

MUMBAI – National Aluminium Co is one of the largest integrated primary producers of aluminum in Asia, and has a presence across the entire value chain from bauxite mining, alumina refining, aluminium smelting, and power generation to downstream products.NALCO has a vast operation capacity in Odisha for a bauxite mine consisting of 68.25 lakh tonne per annum, an alumina refinery consisting of 22.75 lakh TPA, and an aluminium smelter consisting

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