Buy National Aluminium Company, target price Rs 93: Motilal Oswal

Motilal Oswal has buy call on National Aluminium Company with a target price of Rs 93. The current market price of National Aluminium Company Ltd. is Rs 80.05. 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 14702.24 Crore) operating in Metals - Non Ferrous sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2874.47 Crore, up 19.03 % from last quarter Total Income of Rs 2414.95 Crore and up 40.75 % from last year same quarter Total Income of Rs 2042.27 Crore. Company reported net profit after tax of Rs 935.64 Crore in latest quarter.


Investment Rationale
The brokerage values the stock on an SoTP basis at 5x FY23E EV/EBITDA and a 0.75x book value for growth CWIP to arrive at TP of INR93. At CMP, it provides an attractive dividend yield of ~6%.

Promoter/FII Holdings
Promoters held 51.3 per cent stake in the company as of March 31, 2021, while FIIs held 11.3 per cent, DIIs 14.2 per cent and public and others 23 per cent.