NATIONALUM - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | NATIONALUM | Market Cap | 75,155 Cr. | Current Price | 409 ₹ | High / Low | 445 ₹ |
| Stock P/E | 12.9 | Book Value | 119 ₹ | Dividend Yield | 2.57 % | ROCE | 39.2 % |
| ROE | 29.2 % | Face Value | 5.00 ₹ | DMA 50 | 400 ₹ | DMA 200 | 325 ₹ |
| Chg in FII Hold | 2.60 % | Chg in DII Hold | -1.60 % | PAT Qtr | 1,718 Cr. | PAT Prev Qtr | 1,601 Cr. |
| RSI | 51.1 | MACD | -1.18 | Volume | 49,13,020 | Avg Vol 1Wk | 65,43,927 |
| Low price | 176 ₹ | High price | 445 ₹ | PEG Ratio | 0.23 | Debt to equity | 0.00 |
| 52w Index | 86.6 % | Qtr Profit Var | -17.4 % | EPS | 31.7 ₹ | Industry PE | 18.0 |
📊 Financials: The company demonstrates strong profitability with ROE at 29.2% and ROCE at 39.2%, reflecting excellent efficiency in capital usage. Debt-to-equity is 0.00, showing a debt-free balance sheet. Quarterly PAT rose from ₹1,601 Cr. to ₹1,718 Cr., though profit variation of -17.4% indicates some inconsistency. EPS of ₹31.7 supports robust cash flow generation.
💹 Valuation: Current P/E of 12.9 is well below the industry average of 18.0, suggesting undervaluation. The PEG ratio of 0.23 highlights attractive growth prospects relative to price. Book value of ₹119 against a market price of ₹409 implies a fair P/B ratio. Intrinsic value appears supportive of current levels, making the stock appealing for accumulation.
🏭 Business Model: The company operates in aluminum production, benefiting from strong domestic demand, export opportunities, and government support. Competitive advantage lies in scale, cost efficiency, and resource ownership, though earnings remain cyclical with commodity price fluctuations.
📈 Entry Zone: A favorable entry would be closer to ₹380–395, near the 50 DMA of ₹400. Current price of ₹409 is slightly above fair value, so accumulation on dips is recommended.
⏳ Long-Term Holding: Strong fundamentals, debt-free status, and undervaluation relative to peers support long-term holding. Investors can accumulate steadily, with potential for solid returns as aluminum demand continues to grow globally.
Positive
- ✅ Strong ROE (29.2%) and ROCE (39.2%)
- ✅ Debt-free balance sheet (Debt-to-equity 0.00)
- ✅ Dividend yield of 2.57% adds shareholder value
- ✅ P/E (12.9) below industry average, suggesting undervaluation
- ✅ Increase in FII holding (+2.60%) shows strong foreign investor confidence
Limitation
- ⚠️ Profit variation (-17.4%) indicates inconsistency
- ⚠️ EPS of ₹31.7 is modest relative to market capitalization
- ⚠️ Decline in DII holding (-1.60%) shows reduced domestic institutional confidence
Company Negative News
- 📉 Quarterly profit variation of -17.4% highlights earnings inconsistency
- 📉 Decline in DII holding (-1.60%) shows reduced domestic institutional support
Company Positive News
- 📈 Increase in FII holding (+2.60%) reflects strong foreign investor interest
- 📈 PAT growth from ₹1,601 Cr. to ₹1,718 Cr. shows operational resilience
Industry
- 🏭 Aluminum sector benefits from strong domestic and export demand
- 📊 Industry P/E at 18.0 suggests peers are valued higher
- 🌍 Growth opportunities in infrastructure, automotive, and renewable energy sectors
Conclusion
Overall, the company is financially strong with excellent return ratios, debt-free status, and undervaluation compared to peers. Despite modest EPS and profit variation, fundamentals remain solid. Best strategy is cautious accumulation near ₹380–395 for long-term holding, with potential for strong returns as aluminum demand continues to grow globally.
Would you like me to extend this with a peer comparison against other aluminum producers, or a technical analysis view to highlight support/resistance and momentum indicators?