National Aluminium Ltd (NALCO) share price has witnessed healthy buying in the past five sessions, rising by over 2% on BSE. With that, the Navratna PSU stock has made some recovery from its early losses in January. However, YTD, the stock is still down by 3.8% on BSE, creating a buy-on-dips opportunity. The latest to recommend BUY on NALCO shares is Prabhudas Lilladher who sets a target price of Rs 250.
Prabhudas Lilladher’s Recommendation On NALCO:
Nalco is the technical pick of Prabhudas Lilladher in January 2025. Vaishali Parekh, Vice President – Technical Research, at PL Capital Group – Prabhudas Lilladher said, “National Aluminium has eroded significantly from the 263 zone with currently showing signs of stability taking support near the 200 DMA level.”
This indicates a decent pullback to improve the bias, the expert said.
Parekh added, “The RSI has corrected well and currently has indicated a significant pick up from the highly oversold zone with a positive trend reversal to signal a buy.”
Adding, the analyst lastly said, “we suggest to buy the stock for an upside target of Rs 250 keeping the stop loss of Rs 185 level.”
NALCO Share Price:
The midcap aluminium stock ended at Rs 205.85 apiece, up 1.3% on BSE with a market cap of Rs 37,807.07 crore. With that, the stock is merely Rs 57.25 away from hitting its 52-week high of Rs 263.10 apiece.
NALCO has a price-to-equity ratio of 11.93x, while its return on equity is strong at 20%.
NALCO has a strong record of dividends, splits and bonuses.
Dividends: NALCO has delivered up to 49 dividends since August 2000, as per Trendlyne data. In the last 12 months, the stock has rewarded investors with a Rs 8 dividend per share. Currently, it has a dividend yield of 3.68%.
Stock Split: NALCO has split only once and that was in March 2011. The stock split ratio was 1:2, where the face value of Rs 10 was trimmed to Rs 5 each.
Bonus Issue: Also, in March 2011, the company delivered a bonus reward of a 1:1 ratio. Simply put, NALCO gave 1 free share on the existing 1 equity share.
Recently, NALCO announced that Brijendra Pratap Singh has taken over as Chairman-cum-Managing Director (CMD) of National Aluminium Company Ltd. (NALCO), at its Corporate Office here today in Bhubaneswar.
Prior to joining NALCO, Singh was Director-In-Charge for Burnpur and Durgapur Steel Plant and member on the Board of SAIL. With over 35 years of experience in mines and Steel sectors, Shri Singh’s strategic vision and deep industry expertise have been instrumental in advancing SAIL’s modernization goals, driving the growth and sustainability of India’s steel sector in alignment with the National Steel Policy.
About NALCO:
National Aluminium Company Limited (NALCO), a ‘Navratna’ company under the Schedule ‘A’ category of CPSEs, was founded on 7th January 1981 with its registered office in Bhubaneswar. It is one of the country’s largest bauxite, alumina, aluminium and power complex. Currently, the Indian government owns 51.28% of NALCO’s equity capital. The Company has been operating its captive Panchpatmali Bauxite Mines for the pit head Alumina refinery at Damanjodi, in the District of Koraput in Odisha and the Aluminium Smelter & Captive Power Plant at Angul.
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