NATIONALUM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | NATIONALUM | Market Cap | 73,337 Cr. | Current Price | 399 ₹ | High / Low | 445 ₹ |
| Stock P/E | 12.6 | Book Value | 119 ₹ | Dividend Yield | 2.63 % | ROCE | 39.2 % |
| ROE | 29.2 % | Face Value | 5.00 ₹ | DMA 50 | 396 ₹ | DMA 200 | 312 ₹ |
| Chg in FII Hold | 2.60 % | Chg in DII Hold | -1.60 % | PAT Qtr | 1,718 Cr. | PAT Prev Qtr | 1,601 Cr. |
| RSI | 44.1 | MACD | 11.3 | Volume | 1,80,94,680 | Avg Vol 1Wk | 1,02,22,488 |
| Low price | 149 ₹ | High price | 445 ₹ | PEG Ratio | 0.23 | Debt to equity | 0.00 |
| 52w Index | 84.5 % | Qtr Profit Var | -17.4 % | EPS | 31.7 ₹ | Industry PE | 20.1 |
📊 Financials: NATIONALUM demonstrates strong fundamentals with ROE at 29.2% and ROCE at 39.2%, supported by a debt-free balance sheet (0.00 debt-to-equity). EPS is healthy at ₹31.7, and quarterly PAT improved (₹1,718 Cr vs ₹1,601 Cr), though profit variation (-17.4%) highlights some volatility. Dividend yield of 2.63% provides steady income support.
💹 Valuation: The stock trades at a P/E of 12.6, well below the industry average of 20.1, indicating undervaluation. PEG ratio of 0.23 highlights attractive growth-adjusted valuation. Book value of ₹119 provides strong intrinsic backing. Overall, valuation remains highly favorable compared to peers.
🏭 Business Model: NATIONALUM operates in the aluminium sector, with strengths in resource ownership, scale, and government backing. Its competitive advantage lies in low-cost production, strong efficiency, and consistent dividend payouts. However, earnings are sensitive to commodity price cycles and global demand fluctuations.
📈 Entry Zone: Attractive entry would be near ₹385–₹395, aligning with support levels and undervaluation. Current price (₹399) is near the 50 DMA (₹396) and well above the 200 DMA (₹312), suggesting bullish momentum. Long-term investors may accumulate gradually, with focus on commodity cycle sustainability.
Positive
- Strong ROE (29.2%) and ROCE (39.2%).
- Debt-free balance sheet.
- Dividend yield of 2.63% provides steady returns.
- FII holdings increased (+2.60%), showing foreign investor confidence.
Limitation
- Quarterly profit variation (-17.4%) highlights volatility.
- DII holdings declined (-1.60%), showing reduced domestic support.
- Commodity price cycles impact earnings stability.
Company Negative News
- Decline in DII holdings (-1.60%).
- Profit volatility with weaker quarterly growth.
Company Positive News
- Quarterly PAT improved to ₹1,718 Cr.
- FII inflows (+2.60%) reflect strong foreign confidence.
- Strong efficiency metrics and dividend payouts.
Industry
- Aluminium sector remains cyclical and commodity-driven.
- Industry P/E at 20.1 highlights NATIONALUM’s undervaluation.
- Global demand and price cycles impact profitability.
Conclusion
⚖️ NATIONALUM demonstrates strong fundamentals with high efficiency, debt-free status, and attractive valuation. Entry is favorable near ₹385–₹395 for long-term investors. Current levels suggest bullish momentum, making cautious accumulation viable. Holding is recommended for dividend stability and long-term growth, with monitoring of commodity price cycles.