Friday, 14 November 2008

Sell NALCO: Motilal Oswal

Motilal Oswal has recommended a sell rating on National Aluminium Company (NALCO) in its November 12, 2008 research report. "Nalco is expanding the capacity of smelter from 345ktpa to 460ktpa by addition of 240pots. Margins are likely to come under pressure due to softening of aluminium and alumina prices. FY09 EPS is estimated at Rs 24.1 after factoring in aluminium prices of USD 2,200/ton for 3QFY09 and USD 2,000/ton for 4QFY09. FY10E EPS will decline 7.3%YoY to Rs 22.3 factoring in aluminium prices of USD 2,000/ton and alumina prices of USD 250/ton. Other income will contribute 25% to the earnings. The stock trades at P/E of 7.3x FY09E and 7.8x FY10E and EV/EBITDA of 4.3x FY09E and 3.9x FY10E. Sell," says Motilal Oswal's research report.

Disclaimer: The views and investment tips expressed by investment experts 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.

Source: Moneycontrol

No comments:

Post a Comment

DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.