There has been a significant decline in the shares of many PSU companies of the country. From IRFC to IREDA, there has been a significant decline. In such a situation, brokerage house Antique Broking is quite bullish on a government stock and is expecting that the stock may see a good rise in the coming days.
Condition of PSU
Let us first look at the stocks of such government companies which have fallen much below their highs. These include stocks like IRFC (-33%), MTNL (-50%), HUDCO (-35%), IRCON (-37%), IREDA (-26%), Bank of India (-31%). The number of decline is given in brackets in front of the name of the stock. Now let us talk about which stock Antique Broking likes amid the decline in PSU.
Why bullish on the stock?
Brokerage house Antique Broking is quite bullish on Nalco (National Aluminium Company Limited). Let’s also know the reason behind this. The brokerage says that the company is one of the lowest cost bauxite, alumina producers and a major exporter of alumina. The company sells 1.3 metric tonnes of alumina and 0.4 metric tonnes of aluminium annually. The production/sales volume of the last 3 years shows that it is operating at almost full capacity. The brokerage says that the average LME spot aluminium price in 2QFY25TD was $2,360 per tonne. It strengthened by 9.2% year-on-year while it declined by 6.6% quarter-on-quarter. NALCO’s growth outlook, integrated operations and net cash position are better.
New target
Antique Broking has recommended buying the stock. The brokerage says that strong aluminum prices and low costs will strengthen the company’s profits. Also, the target price per share has been kept at Rs 235. On 20 September 2024, the stock price closed at 183. According to this, the stock has seen a rise of about 30 percent from the current price.
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