Buy National Aluminium Company, target price Rs 107: Axis Securities

Axis Securities has buy call on National Aluminium Company with a target price of Rs 107. The current market price of National Aluminium Company is Rs 92.2. 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 16933.75 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 31-03-2022, the company reported a Consolidated Total Income of Rs 4492.10 Crore, up 16.82 % from last quarter Total Income of Rs 3845.25 Crore and up 56.28 % from last year same quarter Total Income of Rs 2874.47 Crore. Company reported net profit after tax of Rs 1025.68 Crore in latest quarter.

Investment Rationale
With Aluminium and Alumina prices coming off the peak, the brokerage revises Aluminium and Alumina price assumptions downwards (Alumina has corrected from the peak of $500/t in Mar’22 to spot at $363/t) and cut our EBITDA estimates for FY23/24E. It reduces TP to Rs 107/share from Rs 150/share against the CMP of Rs 93/share and maintains BUY 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 15% from the CMP.

Promoter/FII Holdings
Promoters held 51.28 per cent stake in the company as of 31-Mar-2022, while FIIs owned 18.03 per cent, DIIs 8.76 per cent.