National Aluminium Company Limited, also known as NALCO, is a public-sector enterprise that is engaged in the business of aluminium mining, refining, smelting, and generating power.Market Capitalisation
As of August 29, 2018, the market cap of NALCO Limited was close to Rs.14,500 crore.
Company’s Wealth and Recent Performance
- For the June quarter of the financial year 2018-18, the company reported its total income to be at Rs.3,035.4 crore. This marks an increase of a little over Rs.1,000 crore in revenue with respect to the same quarter of the previous fiscal year. Q-o-q, the total income has improved by roughly Rs.115 crore.
- As for the total expenses, they were reported to be worth Rs.2,084.4 crore - an increase of a little over Rs.200 crore y-o-y.
- Considering the net profit for the period, it was stated to be at Rs.687 crore - an increase of 433% y-o-y. As compared to the fourth quarter of the previous year, the profit after tax grew by a remarkable 167% from Rs.257 crore. This significant growth in profit came from the Alumina segment. Its revenues in the chemicals segment grew from Rs.941.54 crore to Rs.2,052.6 crore y-o-y.
- The basic earnings per equity share for the quarter stood at Rs.3.55, as against Rs.0.67, y-o-y.
National Aluminium Company Limited Stock Trends in 2018
- On January 2, 2018, the opening share price of NALCO Limited on the National Stock Exchange was Rs.85.70. In the first half of the month, the shares remained close to the Rs.85 mark, without undergoing any massive fluctuations in the prices. In the second half, however, the shares moved on to lose a little over 10% to descend into the Rs.70 region. The closing price on January 31 was Rs.75.30.
- The National Aluminium Company Limited shares continued to head down in the month of February as well. An interim dividend of 94% was announced in the month, although it didn’t help the shares a great deal. The scrip ended the month at Rs.68.55. Things didn’t vary dramatically in the month of February as the shares continued to be traded at levels varying from Rs.61 - Rs.68.
- The share price of National Aluminium Company rose superbly in April. In a little under three weeks, the stocks gained roughly 20% and ascended back to their previous levels around Rs.85. However, in the final week of the month, the rally was halted and the shares dropped down to close at Rs.80.55.
- The NALCO shares were highly bearish over the course of May and June. In the course of these two months, the shares lost their previously earned gains. Towards the end of May, the shares were heading closer to the Rs.70 mark. The trend didn’t change considerably in June with the closing price on June 29 being Rs.64.70.
- In July, the shares slipped into the Rs.50 region. The scrip touched its 52-week low at Rs.56.55. However, August proved to be quite promising for the investors as the scrip commenced a bull run in the month. A final dividend of 20% was also announced in the period. As of late August, the shares were seen trading hands at levels close to Rs.75.
National Aluminium Company Limited Stock Trends in 2016 and 2017
- At the start of 2016, the NALCO share price was varying at levels close to Rs.40. Through the course of January and most of February, the scrip lost a little over 20% to descend into the Rs.30 region. In March, the prices rose once again to reach their previous levels at Rs.40. In the same month, the company announced an interim dividend of 25%.
- In April, the stock price rose to cross the Rs.45 mark but failed to stabilise at those levels. In the months of May and June, the shares remained above the Rs.40 mark and were traded at levels varying from Rs.40 - Rs.43. The closing price at the end of June 2016 was Rs.43 on the NSE.
- The prices rose by a little over 15% in the month of July to touch the Rs.50 mark. However, the shares failed to cross that level and almost immediately, they dipped back into the Rs.40 region. For the remainder of July, August, and September, the shares were traded at levels above Rs.45. Towards the end of September, the company announced a final dividend of 15%.
- In the final quarter of the calendar year, the share price of NALCO made decent gains to end the year on a positive note. The rise was a gradual one, albeit there were minor dips on a couple of instances. The closing price of NALCO at the end of December 2016 was Rs.65.30.
- The National Aluminium Company Limited shares started 2017 on a terrific note. The scrip commenced the year trading at levels close to Rs.65. Over the course of January, the shares gained close to 20% to cross the Rs.75 mark. However, in the month of February, the stocks shed those gains to retreat back to their previous levels at Rs.65. By the end of March, the shares had once again ascended into the Rs.70 region.
- In April and May, the stock price of National Aluminium Company Limited fluctuated between the levels of Rs.68 and Rs.75. In June, the prices dipped marginally to go below the Rs.65 mark, although in the final week of the month, the shares had managed to recover.
- For most of July and August, the NALCO share price remained below the Rs.70 mark. It wasn’t until the start of September that the shares staged a discernible bull run. This time, the stocks gained a little over 20% in a span of two months. At the start of November, the shares hit their 52-week high at Rs.97.60.
- However, over the remainder of the month, the scrip moved on to gradually shed those losses and retreat back to their previous levels at Rs.80. The prices dipped further in December, although in the final week of the year, the shares made marginal gains to end the year at Rs.86 on the NSE.
Should you invest in National Aluminium Company Limited?
- NALCO Limited is a Navaratna company owned and managed by the Ministry of Mines, Government of India. It is engaged in bauxite mining, aluminium smelting and casting, and alumina refining.
- For the first quarter of the FY 2018-19, the company reported excellent figures. Its total income grew by a little over Rs.1,000 crore y-o-y from Rs.1,997 crore to Rs.3,035 crore. Consequently, its net profit after tax also grew by an astounding margin. The figure was reported to be at Rs.687 crore - an increase of 433% y-o-y.
- This massive spike in the revenue came on the account of a sizeable increase in the exports of alumina. Its chemicals segment alone accounted for more than 60% of the revenues. The company has benefited greatly from the increase in the prices of alumina - which have been heading upwards since the closure of the plants in China.
- Considering the performance of the stock, the shares have delivered decent returns since 2016. However, it is important to note that for most of 2018, the scrip has been highly bearish. For many investors, this makes for a lucrative entry point. The company has also been fairly regular with dividends.
- The company is fundamentally strong and has a clear plan mapped out for its future. This, in conjunction with its mining capacity, makes NALCO stocks for a good investment as a part of a diversified portfolio. However, before investing in this stock, it is strongly recommended that you research thoroughly.
National Aluminium Company Limited is a public-sector enterprise that falls under the purview of the Ministry of Mines, Government of India. It is a Navratna company which is primarily engaged in the business of mining, refining, smelting, and generating power. Its operations encompass bauxite, aluminium, and alumina. It is one of the largest producers and exporters of aluminium and alumina in India. It is also one of the lowest-cost producers of metallurgical grade alumina in the world.
History of the Company
National Aluminium Company Limited was incorporated on January 7, 1981, as a wholly owned enterprise of Government of India. The company commenced its operations by manufacturing aluminium hydrate, calcined alumina, aluminium wire rods, and aluminium ingots. Over the course of next decade, NALCO Limited moved on to set up bauxite and aluminium mines and further expanded their capacities to boost its production. The company was listed on the Bombay Stock Exchange in 1992 and on the National Stock Exchange in 1999.
Management of the Company
Dr. T. K. Chand - Chairman and Managing Director
Dr. T. K. Chand presently serves as the Chairman-cum-Managing Director of National Aluminium Company Limited. He has held these positions since July 2015. Under his leadership, the company has reduced its procurement costs by 20%, thus considerably improving its profit margins. He is a veteran of the mining industry and has worked with various reputed organisations over the years. Before joining NALCO Limited, he served as a Director at Rashtriya Ispat Nigam Limited from September 2010 to July 2015. He was also associated with Central Coalfields Limited.
Mr. Dipankar Mahanta - Independent Director
Mr. Dipankar Mahanta is the Independent Director of National Aluminium Company Limited. He has played an important role in developing Amar Seva Sangam from scratch and making it one of the leading organisations that are committed towards rehabilitation and empowerment of people with disabilities. He is also a board member of various non-profit organisations.
Mr. K. C. Samal - Director of Finance and Whole-time Director
Mr. K. C. Samal presently serves as the Director of Finance at National Aluminium Company Limited and also as its Whole-time Director. Mr. Samal has been a part of the finance sector for more than 30 years and is well-versed in audits, accounts, treasury, investors relations, budgeting and control, project finance, capital restructuring, foreign exchange management, et cetera.
National Aluminium Company Limited Listings in NSE, BSE, and Indices
The equity shares of National Aluminium Company Limited are available to the general public for trading. They are listed on the National Stock Exchange and the Stock Exchange of India, Mumbai. The respective codes for the same are as follows:
- NSE Code: NATIONALUM
- BSE Code: 532234
- ISIN: INE139A01034
- Sector: Aluminium
As for the stock market indices, the company does not comprise the country’s two benchmark indices - the Nifty 50 or the BSE Sensex. However, it does form several other important indices such as:
- Nifty 500
- Nifty 200
- Nifty Commodities
- Nifty Full Midcap 100
- Nifty High Beta 50
- Nifty Metal
- S&P BSE PSU
- S&P BSE 500
- S&P BSE 200
- S&P BSE Metal
- S&P BSE Basic Materials
Bhubaneswar - 751013
Contact number: +91-674-2301988
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.