1 Stock Data Sector Aluminium Face Value (Rs.) 10.00 52 wk. High/Low (Rs.) 525.90/334.00 Volume (2 wk. Avg.) 9859.00 BSE Code 532234 Market Cap (Rs.mn.) 238394.70 Financials (Rs. in mn.) FY10 FY11E FY12E Net Sales 51735.80 60530.89 67189.28 EBIDTA 14765.40 20240.90 23111.75 PAT 8125.00 11191.09 13265.91 EPS 12.61 17.37 20.59 P/E 29.34 21.30 17.97 National Aluminium Co.Ltd BUY F I R S T C A L L R E S E A R C H SYNOPSIS National Aluminium Company (Nalco) is India's largest integrated public sector producer of alumina and second largest producer of aluminium. Its combination of modern assets, excellent logistics, cheap power, and captive port facilities has all contributed to making it one of the lowest- cost producers of alumina in the world. NALCO installs new ash disposal system in Power Plant. The system is one of the latest and eco-friendly ways of Ash disposal of Modern Power plants, adopted by Nalco at a cost of Rs.50 cr. The company exports alumina products to countries namely USA, Georgia, Iran, China, Russia, Australia, Indonesia and the UAE. The company’s net sales are expected to grow at a CAGR of 9% over FY09 to FY12E. 1 Year Comparative Graph NALCO BSE SENSEX V.S.R. Sastry Equity Research Desk [email protected]Dr. V.V.L.N. Sastry Ph.D. Chief Research Officer [email protected]C.M.P: Target Price: Rs.370.00 Rs.425.00 Share Holding Pattern December 14 th , 2010
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Stock Data
Sector Aluminium
Face Value (Rs.) 10.00
52 wk. High/Low (Rs.) 525.90/334.00
Volume (2 wk. Avg.) 9859.00
BSE Code 532234
Market Cap (Rs.mn.) 238394.70
Financials (Rs. in mn.) FY10
FY11E FY12E
Net Sales 51735.80 60530.89 67189.28
EBIDTA 14765.40 20240.90 23111.75
PAT 8125.00 11191.09 13265.91
EPS 12.61 17.37 20.59
P/E 29.34 21.30 17.97
National Aluminium Co.Ltd
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SYNOPSIS
National Aluminium Company (Nalco) is India's largest integrated public sector producer of alumina and second largest producer of aluminium. Its combination of modern assets, excellent logistics, cheap power, and captive port facilities has all contributed to making it one of the lowest-cost producers of alumina in the world.
NALCO installs new ash disposal system in Power Plant. The system is one of the latest and eco-friendly ways of Ash disposal of Modern Power plants, adopted by Nalco at a cost of Rs.50 cr.
The company exports alumina products to
countries namely USA, Georgia, Iran, China, Russia, Australia, Indonesia and the UAE.
Ess Dee Aluminium 494.65 14586.60 40.75 12.14 4.96 20.00 *As on 14/12/2010
Investment Highlights
Results Updates (Q2 FY11) (Standalone)
For the Second quarter, the top line of the company increased 25%YoY and stood at Rs.14791.50mn against Rs.11791.10mn of the same period of the last year. The bottom line of the company for the quarter stood at Rs.2240.40mn from Rs.1594.90mn of the corresponding period of the previous year i.e. an increase of 40%YoY.
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EPS of the company for the quarter stood at Rs.3.48 for equity share of Rs.10.00 each.
Expenditure for the quarter stood at Rs.11314.30mn, which is around 9% higher than the corresponding period of the previous year. Power & Fuel cost of the company for the quarter accounts for 34% of the sales of the company and stood at Rs.4963.80mn from Rs.4845.00mn of the corresponding period of the previous year i.e., an increase of 2%YoY. Employ Cost increased 13%YoY to Rs.2027.30mn from Rs.1800.20mn and accounts for 14% of the revenue of the company for the quarter.
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OPM and NPM for the quarter stood at 29% and 15% respectively from 24% and 14% respectively of the same period of the last year.
Company Profile National Aluminium Company (Nalco) was incorporated in 1981, as a public sector enterprise under the Ministry of Mines. The total capital cost of Rs 2408crore was funded through the Government of India's contribution of Rs1289crore and a euro-dollar loan from consortium f International banks of Rs1119crore. The company has Asia's largest integrated aluminium complex, encompassing bauxite mining, alumina refining, aluminium smelting and casting, power generation, rail and port operations. Commissioned during 1985-87, Nalco has emerged to be a star performer in production, export of alumina and aluminium, and more significantly, in propelling a self-sustained growth. Nalco, since its inception, has taken adequate steps for pollution control and effective environment management. Nalco's technology associate Aluminum Pechiney (AP), France, with its experience of stringent pollution control standards in Europe, has ensured eco-friendly process technology. With the growing environmental awareness in India and framing of stringent and statutory regulations, Nalco achieved all statutory clearances before starting its production.
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Strict adherence to approved EMP and constant monitoring has helped Nalco to achieve considerable success in the field of environment management. The company's bauxite mine is located at Panchpatmali Hills in Koraput district of Orissa. It is a fully mechanized open-cast mine, in operation since 1985. It serves feed-stock to alumina refinery. The capacity of mine has increased from 24,00,000 tonnes per year (tpy) to 48,00,000 tpy. Nalco's alumina refinery is located at Damanjodi in Koraput district, which began operations in 1986. It is amongst the top ten alumina refineries in the world. The refinery operates three production streams, each of 5.25 lakh tpy and 3x18.5 MW co-generation of power. The capacity of the refinery has increased from 8,00,000 tpy to 15,75,000 tpy. Its aluminium smelter is located at Angul in Orissa, which is in operation since 1987. It comprises integrated casting & rolling facilities and energy-efficient state-of-the-art Pechiney technology (France). The capacity of smelter has increased from 2,18,000 tpy to 3,45,000 tpy. A captive power plant is located close to smelter. It also has captive rail system for coal transport from Talcher Coalfields. The plant feeds uninterrupted power to smelter and is connected to state grid for sale of surplus power. The capacity of power plant has increased from 600 MW to 960 MW Port facilities are also located on the inner harbour of Visakhapatnam Port with mechanized storage and ship handling facilities for exporting alumina and importing caustic soda. The storage capacity is of 75,000 tonnes of alumina and 30,000 tonnes of caustic soda and can handle up to 1 million tonnes of alumina export per year. Nalco operates a rolled product unit, which is a 100% export oriented unit and is located close to the smelter plant at Angul. The company acquired this unit from IAPL in March 2000. It has a product mix of aluminium alloy coils and sheets with capacity of 50,000 tpy. Exports - The Company exports alumina products to countries namely USA, Georgia, Iran, China, Russia, Australia, Indonesia and the UAE. It exports aluminium products to countries namely Italy, Bahrain, Germany, China, Philippines, Pakistan, Sri Lanka, Nepal, Bangladesh, Myanmar, Thailand, Malaysia, Singapore, Indonesia, Hong Kong, Taiwan, South Korea, UAE, Japan, Turkey, USA and Vietnam The R&D centres at Angul and Damanjodi are recognized by Ministry of Science and Technology, Government of India.
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Products
Alumina
Calcined Alumina
Alumina Hydrate
Speciality Aluminas & Hydrates
Detergent GradeZeolite Aluminium Metal
Standard Ingots
Sow Ingots
Wire Rods
Billets Cast Strips
Cold Rolled Sheets
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Financials Results 12 Months Ended Profit & Loss Account (Standalone)