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National Aluminium Company Ltd Stock Analysis

Mid Cap
Evaluated by 3425 users | BSE: 532234 | NSE: NATIONALUM |
Aluminium & Aluminium Products

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on January 07, 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
National Aluminium Company Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.27%7.8%5.65%6.13%10.07%5.35%5.54%12.86%16.39%1.33%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6,0576,6126,9166,7817,3836,8177,5439,50911,4998,472
Y-o-Y Gr. Rt.-9.2%4.6%-2%8.9%-7.7%10.7%26.1%20.9%-26.3%
Adjusted EPS (Rs.) 4.033.112.112.314.422.693.356.919.260.71
Y-o-Y Gr. Rt.--22.8%-32.2%9.5%91.3%-39.1%24.5%106.3%34%-92.3%
Book Value per Share (Rs.) 43.3245.4646.347.0449.6651.252.854.3556.253.54
Adjusted Net Profit 1,0388005455951,1386936481,3361,728133
Net Op. Cash Flow (Rs. Cr.) 1,6308874419815208811,4361,5902,409-349
Debt to Cash Flow from Ops 0.01000000.040.030.03-0.04
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
National Aluminium Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.8%2.8%4%-26.3%
Adjusted EPS -17.5%-30.6%-40.4%-92.3%
Book Value per Share 2.41.50.5-4.7
Share Price 2.9% 11.8% -1.2% 167.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 9.6374.614.959.135.335.5412.9116.461.3
Operating Profit Margin (%) 27.9519.3115.5516.7725.3614.0714.3114.725.125.76
Net Profit Margin (%) 17.1412.17.888.7815.4210.168.5914.0515.031.57
Debt to Equity 0000000.0100.010
Working Capital Days 132154174189164169149120100141
Cash Conversion Cycle -2128434230301610-423
Entity Percentage Holding
Promoters 51.28%
Institutions 18.02%
Non-Institutions 30.70%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of National Aluminium Company Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that National Aluminium Company Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of National Aluminium Company Ltd's performance infers:

National Aluminium Company Ltd earnings have declined by -30.6%, whereas share price has appreciated 11.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of National Aluminium Company Ltd share prices over the last 10 years. Here is what we found out:

National Aluminium Company Ltd share price has appreciated -1.6% annually over the past ten years.

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on January 07, 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power. NALCO is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country.

Globally, NALCO has achieved the

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines. It was established on January 07, 1981, with its registered office at Bhubaneswar. The Company is a group ‘A’ CPSE, having integrated and diversified operations in mining, metal and power. NALCO is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country.

Globally, NALCO has achieved the distinction of being the lowest cost producer of Bauxite and Alumina in the world for the year 2019 as per the latest report of Wood Mackenzie. With its consistent track record in capacity utilization, technology absorption, quality assurance, export performance and posting profits, NALCO is a bright example of India’s industrial capability.

NALCO is the first Public Sector Company in the country to venture into international market in a big way with London Metal Exchange (LME) registration since May, 1989. The Company is listed at Bombay Stock Exchange (BSE) since 1992 and National Stock Exchange (NSE) since 1999. Besides, ISO 9001, ISO 14001, OHSAS 18000, ISO 50001 & SA 8000 certifications, NALCO’s Data Centre at Corporate Office and Disaster Recovery Site at Alumina Refinery certified for Information Security Management System and awarded ISO 27001:2013 Certification and Accreditation from International Accreditation Services, USA.

Business area of the company

NALCO has the largest integrated alumina-aluminium complex of Asia. Its integrated operations cover the entire aluminium production value chain from mining bauxite, refining alumina, smelting aluminium, captive power generation to a strong logistic network.

Products and Services offered by the company

Operation

  • Bauxite Mines
  • Aluminum Smelter
  • Captive Power plant
  • Rolled Products Unit
  • Port Facilities
  • Wind Power Plants
  • Solar Power
  • NRTC- Testing Services

Products

  • Aluminum Metal
  • Alumina & Hydrate
  • Zeolite-A
  • Special Products
  • Rolled Products

Major Achievements

  • Lowest cost producer of Alumina and Bauxite in the World in 2019 (as per Wood Mackenzie Report).
  • Second highest Net Foreign Exchange Earning CPSE in the Country in FY 2018-19 (as Public Enterprises Survey Report by DPE).
  • Successful commercialization of 1st of its kind in the world Nano technology based De-fluoridation plant to reduce fluoride content in effluent water.
  • Five Star Rating for Panchpatmali Bauxite Mines by Ministry of Mines for 2nd consecutive year.
  • Recognized with ‘Honourable Mention’ for Excellence in the field of Corporate Social Responsibility (CSR) at National CSR award 2018 by Ministry of Corporate Affairs.
  • Formed a JV Company with MIDHANI to make high end aluminium alloy to meet the requirement of defence and aerospace sector.
  • Formed a JV Company KABIL with HCL and MECL to acquire strategic mineral assets in overseas location and making supply in India.
  • NALCO records success in bauxite, alumina production.
  • NALCO receives awards for CSR project 'Nalco Ki Ladli'.

Milestones

  • Discovery of East Coast Bauxite -1975
  • Preparation of NALCO’s Feasibility Report - July 1979
  • Investment decision by the Government - Jan 1980
  • Formation of the Company - Jan 1981
  • Foundation Stone laid by Late Smt. Indira Gandhi - March 1981
  • Formation of the Company - Jan 1981
  • Commissioning of Port Facilities -Sept 1985
  • Commissioning of Bauxite Mines - Nov 1985
  • Commissioning of Alumina Refinery - Sept 1986
  • Commissioning of Captive Power Plant - Sept 1986
  • Commissioning of Aluminium Smelter- 1987
  • Commencement of Sale of Aluminium - May 1987
  • Commencement of Alumina Export - Jan 1988
  • Commencement of Aluminium Export - Sept 1988
  • First CAPEXIL Export Award -1988
  • London Metal Exchange Registration - May 1989
  • Dedicated to the Nation by Late Shri Rajiv Gandhi - June 1989
  • Star Trading House Status - Jan 1992
  • Indira Priyadarshini Vrikshamitra Award by Govt. of India - 1994
  • First EEPC Export Award - 1998-99
  • Indira Gandhi Paryavaran Puraskar by Govt. of India - 2000
  • Dedication of 1st phase of Mines & Alumina Refinery Expansion - April 2002
  • Completion of 1st phase expansion - 2004
  • Five Star Export House Status -2005
  • Navratna Status - April 2008
  • Premier Trading House Status - Sept 2009
  • NALCO Foundation for CSR registered - July 2010
  • Best Listed CPSE Award from Prime Minister - 2010
  • Formation of JV Company with IDCO for setting up Angul Aluminium Park - July 2010
  • Social Accountability (SA -8000) Standard Certification for all units-Since October 2010
  • PSE Excellence Award for CSR - 2011, in Maharatna & Navratna Category
  • Completion of 2nd phase expansion - 2011
  • Commissioning of 1st Wind Power Plant of capacity 50.4 MW in Gandikota, Andhra Pradesh
  • Refinery Capacity Upgradation completed
  • 260 KWp Rooftop solar System commissioned at Corporate Office - May 2014
  • Commissioning of 2nd wind power plant of capacity 47.6 MW at Ludarwa, Jaisalmer,Rajasthan- 2014
  • Commissioning of 4th wind power plant of capacity 50.4 MW at Sangli, Maharashtra- 2016
  • Commissioning of 3rd wind power plant of capacity 50 MW at Devikot, Jaisalmer, Rajasthan- 2016
  • 1st of its kind in the world, Emrion nano-technology based De-flurodisation plant commissioned- 2017
  • 5-Star Rating status to Panchpatmali Bauxite Mines by Ministry of Mines- 2017
  • SCOPE Award of Excellence in Navratna / Maharatna category & SCOPE Meritorious Award for CSR- 2017
  • Foundation stone laying of 2nd Alloy Wire Rod unit- 2018
  • New Corporate Plan 2017-32 rolled out-2018
  • Production started from South block of Panchpatmalli Bauxite Mines- 2018
  • NALCO gets mining lease for Utkal-D coal block- 2020
  • NALCO inks Memorandum of Understanding (MoU) with Numaligarh Refinery (NRL) for long term supply of CP Coke to ensure raw material security- 2020
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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