Natl. Aluminium (NATIONALUM)

FairStock Score: 94/100 — HIGH CONVICTION

Score breakdown: P/E: 3/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at National Aluminium as a Graham-Buffett investor and see a debt-free commodity producer with exceptional returns: ROE 34.49%, ROCE 43.96%, D/E 0.00. That is a strong balance sheet. Sales grew 39.30% and profit 91.10%; latest quarter sales were ₹4,731 Cr and net profit ₹1,595 Cr, with FCF of ₹1,835 Cr. Piotroski 8/9 and Altman Z 4.46 reinforce financial health. Promoter holding is 51.28%, dividend yield 1.06%, and the 5-year revenue CAGR of 14.66% shows steady top-line progress. But this is aluminium, a cyclical business. Its moat is not a branded consumer franchise; it depends on commodity prices, power, alumina, and global cycles. On valuation, P/E 10.23 and PEG 0.27 look attractive if growth persists. However, Graham Number is ₹270.12, so at ₹376 I am paying about 31% above it, with margin of safety -31.28%. DCF intrinsic value is only ₹105.66, far below the market price. EV/EBITDA of -51.39 is unusual and needs verification, not blind celebration. The 52W range ₹221.37–₹445.15 shows volatility. Market cap ₹69,057 Cr, P/B 3.20, book value ₹117.65. FairStock 94/100 is high conviction, but a wonderful business is not always a wonderful price. I prefer to buy cyclicals when pessimism is high, not after returns have already turned excellent. I would wait for a margin of safety closer to Graham Number or DCF and treat this as a cyclical, not a core compounder.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer