PSU metal company, National Aluminium (NALCO) witnessed a massive surge in the October 1, 2024, trading session with the stock price hitting a new 52-week high of Rs 227.35 apiece. Overall, on Tuesday, the stock rallied by 8%. NALCO is a top technical pick in the trading week of September 30th to October 4th.

NALCO Share Price:

After hitting a new 52-week high of Rs 227.35 apiece on October 1, NALCO’s share price ended at Rs 224.15 apiece up by 6.5% on BSE with a market cap of Rs 41,168.10 crore. The price-to-equity ratio is at 17.81x, while the return on equity is at 15.86%.

NALCO’s weekly gains are a whopping 13.70%. While in a month, the stock zoomed by 25.54%. Further, year-to-date, the stock has rallied by 65%. In a year, NALCO emerges as a multi-bagger with an upside of 132%.

NALCO Bonus Issue, Stock Splits, Dividends:

Dividends: NALCO has delivered up to 48 dividends since August 2000, as per Trendlyne data. The stock has distributed a dividend of Rs 5 per share in the last 12 months. Its current dividend yield is about 2.23%.

Stock Splits: NALCO had carried a stock split only once in March 2011. The face value of the company of Rs 10 split to Rs 5, hence a ratio of 1:2.

Bonus Issue: Further, the company also delivered one bonus share in the ratio of 1:1 in March 2011. Meaning, NALCO gave 1 free share on the existing 1 equity share.

NALCO New Update:

Last week, the Navratna PSU announced that it has recorded a sales turnover of Rs.13,149 crore, a net profit of Rs.2,060 crore and an export turnover of Rs. 4,275.73 crore in FY24.

Among the notable achievements of FY 2023-24, the Aluminium major NALCO achieved highest-ever Bauxite excavation and produced 21.24 lakh tonne Alumina Hydrate operating beyond 100% capacity utilisation. Similarly, on the sales front, the company has registered the highest-ever metal sale of 4.70 lakh tonne and the Aluminium Smelter plant achieved highest ever cast metal production of 4.63 lakh MT in the FY 2023-24, as per the filing.

Sridhar Patra, CMD of NALCO on September 27 said, “NALCO is dedicated to drive forward India’s industrial prowess and economic resilience. The future holds immense possibilities for NALCO, as we continue to align our strategies with global trends and national priorities, ensuring that we remain at the forefront of the aluminium industry.”

BUY NALCO Share Price?

Giving a technical outlook, SMC Global Securities in its note said, the stock closed at Rs.207.04 on 27th September, 2024. It made a 52-week low at Rs.88.60 on 26th October, 2023 and a 52-week high of Rs.212.40 on 27th September 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 165.

Further, the brokerage highlighted that the stock has been maintaining its Bull Run and has seen rising in a mounting channel with the formation of higher high and higher low patterns on daily charts. Last week, the stock also marked its 52-week high of 212.40.

Technically, it said, the stock has given a fresh breakout above the symmetrical triangle pattern with prices seen holding well above its 200-day exponential moving average on daily charts. The rise in average volumes along with price action suggests further upside into the stock after a breakout.

Thereby, SMC’s note said, “one can buy the stock on dips in range of 195-200 for the upside target of 225- 230 levels with SL below 175 levels.”

National Aluminium Company Limited (NALCO), a ‘Navratna’ company under the Schedule ‘A’ category of CPSE’s, 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 Aluminium Smelter & Captive Power Plant at Angul.

Story first published: Tuesday, October 1, 2024, 23:50 [IST]