Networth Broking has recommended investors to "Accumulate" Nalco at current levels. |
In a report released on July 28, the brokerage said: "Aluminium prices have recouped to an extent, post the crash in May 2006. We expect aluminium prices to remain firm till March 2007 considering the favourable demand-supply scenario. Alumina prices, on the other hand, have corrected and we expect them to remain subdued in the short term. At the CMP of Rs.197.8, the company is trading at a P/E of 7.0x FY07E and 8.9x FY08E. We maintain 'Accumulate' with a one-year price target of Rs 222." |
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