Adani Stocks Drag Market Down, But This Multibagger Metal Stock Hits a 52-Week High!
Despite the market slump, one metal stock shines brightly, posting a remarkable new high.
Shares of National Aluminium Company (NALCO) hit a new peak of Rs 253 in Thursday’s intra-day trading, marking a 5.5 per cent increase on the NSE. This growth came despite an overall weak market. Over the past three days, NALCO’s stock has jumped 15 per cent, driven by news from China regarding its export tax policy.
Impact of China’s Export Policy
China recently announced that it would cancel export tax rebates for aluminium and copper products, effective December 1, 2024. This decision led to an 8 per cent spike in LME aluminium prices, reaching $2,730 per tonne. Analysts at ICICI Securities believe this move will reduce China’s aluminium exports, tightening the global supply, which is expected to benefit companies like NALCO in India.
Impressive Annual Growth
NALCO’s stock has surged by an impressive 170 per cent over the past year, far outpacing the 17 per cent rise in the BSE Sensex. The state-owned company, a part of the Government of India’s Navaratna CPSEs, has shown strong performance, boosted by the global price hike in aluminium. The government holds 51.28 per cent stake in the company as of September 2024.
Excellent Financial Performance in FY25
In the first half of FY25, NALCO reported a remarkable 199 per cent increase in net profit, reaching Rs 1,663 crore compared to Rs 556 crore in the same period last year. The company also achieved its highest-ever domestic metal sales, reaching 221,966 MT during H1FY25.
Future Growth Drivers
NALCO’s expansion in alumina refining, rising alumina prices, and cost-saving initiatives, including captive coal mining, are expected to further boost earnings. The company is one of India’s largest producers of bauxite, alumina, and aluminium, with significant export volumes, particularly alumina. These factors position NALCO well for continued growth.
Stock Performance
Over the past year, NALCO has delivered an exceptional return of 168 per cent. Year-to-date, the stock has returned 88 per cent, and in just the past week, it has delivered a return of 8.65 per cent. This performance highlights the strong market confidence in the company’s future prospects.