Hold National Aluminium Company, target price Rs 85: Axis Securities

Axis Securities has hold call on National Aluminium Company with a target price of Rs 85. The current market price of National Aluminium Company is Rs 78.2. Time period given by analyst is one year when National Aluminium Company Ltd. price can reach defined target.

National Aluminium Company Ltd., incorporated in the year 1981, is a Mid Cap company (having a market cap of Rs 14472.66 Crore) operating in Metals - Non Ferrous sector.

National Aluminium Company Ltd. key Products/Revenue Segments include Aluminium, Alumina, Other Operating Revenue, Wind Power for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 3846.22 Crore, down -14.38 % from last quarter Total Income of Rs 4492.10 Crore and up 53.46 % from last year same quarter Total Income of Rs 2506.29 Crore. Company reported net profit after tax of Rs 578.64 Crore in latest quarter.


Investment Rationale
The brokerage reduces TP to Rs 85/share from Rs 107/share against the CMP of Rs 79/share and downgrade from BUY to HOLD rating. It continues to value the company at 5.5x FY24 EBITDA and 0.5x book value of CWIP. TP implies an upside potential of 9% from the CMP.

Promoter/FII Holdings
Promoters held 51.28 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.71 per cent, DIIs 10.13 per cent.