The company is trading at P/E of 27.1x and 17.5x for FY10E and
FY11E earning respectively, while it is trading at 14.3x and 8.7x for
FY10E and FY11E EV/EBITDA respectively. We are retaining our
‘SELL’ rating in view of sky-high valuation; however, we have
upgrade our target price to Rs 268/share from Rs 165/share (6x FY11
EV/EBITDA) considering higher volume and better price realization.
Nonetheless, stock may find support at current prices in near term, as
NALCO would be one of the prime candidate for disinvestments.
| NIFTY 
