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Sell NALCO, target of Rs 250: Indiabulls Securities

Posted on: June 27th, 2009 and is filed under Brokerage Recommendations.

Indiabulls Securities Research has maintained its sell rating on National Aluminium Company Ltd (NALCO) with a target price of Rs 250 in its June 25, 2009 research report.

“Based on DCF valuation, we have arrived at a target price of Rs. 250 (assuming a 14.8% WACC and a 5% terminal growth rate). Since our target price provides a downside potential of 18% from the CMP, we have maintained our ‘Sell’ rating for the stock. As the DCF valuation is sensitive to the changes in WACC and terminal growth rate, we have performed a sensitivity analysis of the same,” says Indiabulls Securities’ research report.

source: Moneycontrol

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