Nalco (BUY, 41% upside) - Ambit

Nalco will declare its 4QFY13 results today. We expect revenues of Rs16.1bn (down 5% QoQ) on account of lower alumina sales in the initial part of the quarter (from the normalisation of bauxite mining issues and the base effect in 3QFY13). Nalco's 3QFY13 alumina sales were higher due to a delayed shipment. We expect alumina sales of 186kt vs 220kt in 3QFY13 but aluminium sales are likely to remain at ~100kt. Realisations are likely to remain flat QoQ on account of stable LME aluminium prices. We expect EBITDA of Rs1,329mn vs Rs1,827mn in the previous quarter on account of lower sales QoQ.

Source : Equity Bulls

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