Motilal Oswal - National Aluminium (NATIONALUM) MOSL: NALCO (Buy)-Bumper quarter led by strong alumina pricing

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Motilal Oswal

MOSL: NALCO (Buy)-Bumper quarter led by strong alumina pricing

NALCO: Bumper quarter led by strong alumina pricing; Valuations attractive; Maintain Buy

(NACL IN, Mkt Cap USD1.9b, CMP INR67, TP INR108, 60% Upside, Buy)

NALCO's 1QFY19 EBITDA increased 61% QoQ (+344% YoY) to INR10.1b (est. of INR6.9b), driven by strong alumina pricing. Adj. PAT grew 70% QoQ (~5x YoY) to INR6.3b. PAT is adjusted for ~INR0.9b gain on revaluation of renewable purchase obligation after resumption of trading on electricity exchanges.

Alumina: Production increased 3% QoQ (+11% YoY) to 583kt - best ever in a quarter. Sales declined 27% QoQ (+24% YoY) to 320kt due to re-stocking. Alumina realization increased 36% QoQ to USD562/t.
Aluminum: Production was down 2% QoQ but up 9% YoY to 110kt. Sales were down ~6% QoQ (+18% YoY) to 105kt. Aluminum realization increased ~7% QoQ to USD2,526/t led by higher LME. Cost of production (incl. depreciation) was down USD177/t QoQ to USD2,161/t due to lower other expenses. EBIT per ton doubled QoQ to USD365.

09/08/2018 6 EN

Underlying

National Aluminium

National Aluminium is engaged in the manufacture and distribution of aluminum related products and in the generation of electricity. Co.'s aluminum products include bauxite, zeolite, alumina hydrate, special grade hydrate, calcined alumina, special grade alumina, aluminium standard and sow ingots, aluminium wire rods, aluminium billets, aluminium strips and rolled products.

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INE139A01034 National Stock Exchange of India India

Provider

Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: NALCO (Buy)-Bumper quarter led by strong alumina pricing

NATIONAL ALUMINIUM loses on its star level and is downgraded to Slightly Positive

Monthly LMI Update Independent Investment Research

MOSL: NALCO (Buy) 4QFY21: Beneficiary of higher aluminum prices

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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