31 MAY 2013The Hindu Business Line
Nalco stock hits low in 52-week
Edited by : AL CIRCLE
1 min read
Nalco stock on Thursday came closer to its 52-week low of INR 32.70 as it touched day’s low at INR 34.35, but finished at INR 34.55, down 1.29 per cent on the BSE.
According to analysts, market took a dim view of the integrated metal maker. Its net profit margin on sale has been gradually declining in the past years. In FY13, it has come down to below 10 per cent.
According to a metal analyst net-to-sales margin has dropped to around 9 per cent.
“It had already come down from 33 per cent in 2007-08 to 13 per cent in 2011-12,” said another stock analyst of an institutional brokerage. Had it not been for non-operational income, Nalco would have made a net loss before tax, industry observers pointed out.
Total capex for FY14 has been planned at USD 307.6 million including USD159.1 million proposed payment for NPCIL project, which is not paid yet. Other capex would include second wind power mill in Rajasthan, Utkal coal block, alumina refinery upgradation, joint venture with GMDC.
According to analysts, market took a dim view of the integrated metal maker. Its net profit margin on sale has been gradually declining in the past years. In FY13, it has come down to below 10 per cent.
According to a metal analyst net-to-sales margin has dropped to around 9 per cent.
“It had already come down from 33 per cent in 2007-08 to 13 per cent in 2011-12,” said another stock analyst of an institutional brokerage. Had it not been for non-operational income, Nalco would have made a net loss before tax, industry observers pointed out.
Total capex for FY14 has been planned at USD 307.6 million including USD159.1 million proposed payment for NPCIL project, which is not paid yet. Other capex would include second wind power mill in Rajasthan, Utkal coal block, alumina refinery upgradation, joint venture with GMDC.
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