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Fundamental Reasons:-
Nalco is a public sector mining behemoth which was incorporated in 1981, as a public sector enterprise of the
Government of India. Over the years, on account of its rapid expansion and proven processes, company catapult into
the big league of “ Navratna”. NALCO is having Asia’s largest integrated Aluminum complex, which encompassing
bauxite mining, alumina refining, Aluminum smelting and casting, power generation, rail and port operations. Since
its inception, Nalco zeroed upon the coveted field of Aluminum & various allied products. In India, Company is
having the largest aluminum manufacturing capacity in government sector, while second largest on overall basis.(
HINDALCO is the largest aluminum manufacturing company in India).
NALCO has reported its’ Q-3;FY2011 result, very much inline with the market expectations. Mainly on account of
the all round performance by its all verticals(processing, mining etc) and higher realization, NALCO has reported an
excellent surge in the bottom-line and moderate rise in the topline. Based on the improving economic conditions,
higher export and good margins, company have registered a good performance after countering the net impact of
surging cost. Total revenue of the company rose to Rs.1443.12 Crore as compared to Rs.1417.61 Crore in DEC’09,
showing a YoY growth of 1.79%, while total profit during the said period recorded at Rs 255.95 Crore against a figure
of Rs 155.18 Crore on Y/Y basis a rise of 14.93%. During the said period , Earning per share of the company also
has improved significantly and recorded to Rs 1.99 from a average value of Rs 1.20 as on 31st DEC; 2009. Apart
from higher realization, effective cost management helped the company in recording this good performance.
NALCO is expected to garner good revenue and profit in coming quarters because of following facts: - 1. Nalco's Rs
4,402 crore expansion plan to raise alumina refinery capacity from 1.575 million tonnes to 2.1 million tonnes are at
advance stages of commissioning. 2. In order to save its EBDITA margins, Nalco raised aluminum prices by Rs. 5000
a tonne. 3. National Aluminum Company has planned Rs 700 crore capital expenditure in 2011-12 for expansion of
refinery in Orissa and setting up a nuclear power project in Gujarat. This may add visibility to the growth of top line
& Bottomline in future. 4. Global production of Aluminum currently stands at 39-40 million tonnes per annum.
Demand also stands at around the same level. Meanwhile, some smelters have been closed in China in the recent
past, leading to firming up of the price. 5. National Aluminum Company Limited is likely to set up its refinery near
Makavarapalem in Visakhapatnam district. The 1.4 million metric tonne capacity green field refinery at an estimated
investment of more than Rs 4000 crore is expected to be commissioned in next three years. All these will augment
the value of shareholders.
Metal & Mining sector is associated with other industrial verticals in our Country. Though, NALCO owing to its
dominant position and higher reach may be the highest beneficiary of any uptrend in the sector. Yet Cyclical nature
of the industry & insalubrious working condition may continue to be a concern. Higher volatility in the currency
market may continue to add jitter in the Metal & Mining stocks. Rupee likely to be volatile with FII inflows expected
to determine the medium term movements. Recovery issues in US and Euro Zone economies and in case of any
abrupt withdrawal by FIIs, NALCO may witness some temporary corrections before moving up
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Fundamental Reasons:-
Nalco is a public sector mining behemoth which was incorporated in 1981, as a public sector enterprise of the
Government of India. Over the years, on account of its rapid expansion and proven processes, company catapult into
the big league of “ Navratna”. NALCO is having Asia’s largest integrated Aluminum complex, which encompassing
bauxite mining, alumina refining, Aluminum smelting and casting, power generation, rail and port operations. Since
its inception, Nalco zeroed upon the coveted field of Aluminum & various allied products. In India, Company is
having the largest aluminum manufacturing capacity in government sector, while second largest on overall basis.(
HINDALCO is the largest aluminum manufacturing company in India).
NALCO has reported its’ Q-3;FY2011 result, very much inline with the market expectations. Mainly on account of
the all round performance by its all verticals(processing, mining etc) and higher realization, NALCO has reported an
excellent surge in the bottom-line and moderate rise in the topline. Based on the improving economic conditions,
higher export and good margins, company have registered a good performance after countering the net impact of
surging cost. Total revenue of the company rose to Rs.1443.12 Crore as compared to Rs.1417.61 Crore in DEC’09,
showing a YoY growth of 1.79%, while total profit during the said period recorded at Rs 255.95 Crore against a figure
of Rs 155.18 Crore on Y/Y basis a rise of 14.93%. During the said period , Earning per share of the company also
has improved significantly and recorded to Rs 1.99 from a average value of Rs 1.20 as on 31st DEC; 2009. Apart
from higher realization, effective cost management helped the company in recording this good performance.
NALCO is expected to garner good revenue and profit in coming quarters because of following facts: - 1. Nalco's Rs
4,402 crore expansion plan to raise alumina refinery capacity from 1.575 million tonnes to 2.1 million tonnes are at
advance stages of commissioning. 2. In order to save its EBDITA margins, Nalco raised aluminum prices by Rs. 5000
a tonne. 3. National Aluminum Company has planned Rs 700 crore capital expenditure in 2011-12 for expansion of
refinery in Orissa and setting up a nuclear power project in Gujarat. This may add visibility to the growth of top line
& Bottomline in future. 4. Global production of Aluminum currently stands at 39-40 million tonnes per annum.
Demand also stands at around the same level. Meanwhile, some smelters have been closed in China in the recent
past, leading to firming up of the price. 5. National Aluminum Company Limited is likely to set up its refinery near
Makavarapalem in Visakhapatnam district. The 1.4 million metric tonne capacity green field refinery at an estimated
investment of more than Rs 4000 crore is expected to be commissioned in next three years. All these will augment
the value of shareholders.
Metal & Mining sector is associated with other industrial verticals in our Country. Though, NALCO owing to its
dominant position and higher reach may be the highest beneficiary of any uptrend in the sector. Yet Cyclical nature
of the industry & insalubrious working condition may continue to be a concern. Higher volatility in the currency
market may continue to add jitter in the Metal & Mining stocks. Rupee likely to be volatile with FII inflows expected
to determine the medium term movements. Recovery issues in US and Euro Zone economies and in case of any
abrupt withdrawal by FIIs, NALCO may witness some temporary corrections before moving up
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