National Aluminum Company Limited (Nalco) registers almost seven times growth in consolidated profit 747.8 crore for the quarter ended September 30, as against 107.27 crore in the year-ago period. NALCO It is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metals and power.
Analysts at Philips Capital continue to maintain their positive outlook on the aluminum demand-supply outlook as new capacity additions in China are expected to slow while demand remains strong. Their buy rating on NALCO shares comes with a target price of 115 each on the back of higher alumina expectations to outpace second quarter earnings estimates and drive earnings growth.
“The recent rise and fall in aluminum prices is largely a function of changes in energy costs. We expect aluminum prices to remain around $2,500-2,650 in the near to medium term, due to the moderation in RM/energy costs and in FY23 As we mentioned in our 1Q note, alumina prices were 12% of aluminum which was less than a decade and hence we expected alumina to improve by 15-16% which is achieved It is expected that this relationship will hold true in the near to medium term,” the note said.
As per the shareholding pattern of BSE, Indian veteran investor and stock market trader Rakesh Jhunjhunwala holds 1.36% stake in PSU company NALCO as of September 2021. He had no stake in the previous quarters.
Shares of NALCO have delivered multibagger returns this year (Year-to-date or YTD), with the stock rising over 125% so far in 2021. In a span of one year, NALCO has skyrocketed by over 172%.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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