Stock market analyst Ashwani Gujral of stockmechanics.com maintained ‘Buy’ rating on National Aluminium Company Ltd (NALCO) to achieve a short term target between Rs 206 – Rs 320.

According to Mr. Gujral, interested traders can buy the stock with a strict stop loss of Rs 270.

Today (July 07), the shares of the company opened at Rs 281.50 as against it last closure of Rs 280.55 on the Bombay Stock Exchange (BSE). Current EPS & P/E ratio stood at 19.75 & 14.25 respectively. The share price has seen a 52-week high of Rs 452 and a low of Rs 108.35 on BSE.

Nalco, on July 08, has closed one 120 Mw section of its captive power plant (CPP) at Angul owing to severe coal disaster.

This has slashed power supply to NALCO’s smelter at the same site by around 90 Mw resulting in 13.6% fall in daily aluminium productivity.

Due to limited supply of coal from the Mahanadi Coalfield (MCL), NALCO authorities closed one division of its 960 Mw CPP. The CPP has a total of eight units.

This has cut down supply of power to the company smelter, also at Angul, by about 90 Mw.

Accordingly, the aluminium production has come from an average of 1100 ton on a daily basis to around 950 ton.

National Aluminium Company (NALCO), in June 2009, said that it has added 120 megawatts capacity at its captive power plant under its ongoing second phase of expansion, reports Economic Times.

The overall capacity of the power plant, siyuated in Angul in Orissa, currently stands at 1,080 megawatts.

NALCO`s power plant is the lifeline of its aluminium smelter plant situated nearby, where development is also underway.