Nalco gains as foreign brokerage maintains outperform rating

National Aluminium Company rose 2.91% to Rs 42.50 at 11:54 IST on BSE on reports a foreign brokerage maintained outperform rating on the stock.

Meanwhile, the S&P BSE Sensex was up 142.54 points or 0.53% at 26,829.05.

On BSE, so far 2.09 lakh shares were traded in the counter as against average daily volume of 1.26 lakh shares in the past one quarter.

The stock hit a high of Rs 43 and a low of Rs 41.15 so far during the day. The stock had hit a 52-week high of Rs 68.80 on 19 September 2014. The stock had hit a 52-week low of Rs 40.10 on 10 June 2015.

The stock had underperformed the market over the past one month till 16 June 2015, sliding 16.98% compared with the Sensex's 2.33% fall. The scrip had also underperformed the market in past one quarter, declining 11.47% as against Sensex's 6.16% fall.

The large-cap company has equity capital of Rs 1288.62 crore. Face value per share is Rs 5.

The foreign brokerage reportedly said that alumina prices are at nine year high and capital expenditure on alumina refinery should aid return on capital employed for National Aluminium Company (Nalco). The brokerage said that Nalco's valuations are attractive and its EBITDA (earnings before interest, taxation, depreciation and amortization) discount is attractive compared to its rival Hindalco.

Nalco's net profit rose 105.8% to Rs 354.87 crore on 0.2% decline in net sales to Rs 1778.46 crore in Q4 March 2015 over Q4 March 2014.

Nalco is a Navratna CPSE under Ministry of Mines, Government of India. The company has integrated and diversified operations in mining, metal and power. Presently, Government of India holds 80.93% equity of Nalco.

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