Thursday, December 18, 2008

Nalco Shines On Buzz Equity Govt Take Measures To Protect - Dec 18, 2008

Meanwhile, the BSE Sensex was up 318.17 points, or 3.25%, to 10031.51.On BSE, 3.64 lakh shares were traded in the counter. The scrip had an average daily volume of 2.25 lakh shares in the past one quarter.The stock hit a high of Rs 204.20 and a low of Rs 180 so far during the day. The stock had a 52-week high of Rs 565.90 on 29 May 2008 and a 52-week low of Rs 108.35 on 27 October 2008.

The stock had underperformed the market over the past one month till 17 December 2008, declining 1.74% as compared to the Sensex's 4.57% rise. It had also underperformed the market in the past one quarter, falling 53.57% as compared to the Sensex's fall of 26.75%.The large-cap aluminium maker has an equity capital of Rs 644.31 crore. Face value per share is Rs 10.

The current price of Rs 202.50 discounts its Q2 September 2008 annualised EPS of Rs 27.59, by a PE multiple of 7.33.According to reports, the stimulus package, the second in the month, will include safeguards for chemical, aluminium and tyre producers against cheaper imports from China.

This comes in the background of a surge in imports from China adversely impacting the domestic sector. Imports from China in 101 items increased to Rs 42,000 crore in the first eight months ended November 2008, compared with Rs 19,000 crore in corresponding period last year, according to reports.

It may be recalled that the government had last month imposed a 5% import duty on specified iron and steel items to protect the domestic steel industry from cheaper imports.National Aluminium Companys' net profit rose 1.1% to Rs 444.46 crore on a 17.4% rise in sales to Rs 1536.42 crore in Q2 September 2008 over Q2 September 2007.Nalco manufactures and distributes aluminum products. Government of India holds 87.15% stake in the company.

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