Shares of National Aluminium Company Limited surged nearly 9% amid global supply disruptions and aluminium market optimism, with investors eyeing structural growth and a 1 rupee dividend entitlement.
National Aluminium Company Limited, better known as NALCO, drew heavy buying interest on August 12 as metal stocks rallied on the back of supply concerns in global aluminium markets. Reuters-style market reporting on the move pointed to Norsk Hydro ASA’s decision to cut output at its Alunorte alumina refinery in Brazil to 50% of capacity, a development that investors read as potentially supportive for aluminium prices and, by extension, Indian producers such as NALCO. The stock rose almost 9% intraday before closing at ₹418.50, leaving it only about ₹27 shy of its 52-week peak of ₹445.10.
The rally has sharpened attention on a state-backed counter that has already delivered outsized gains over the past year. Goodreturns said NALCO has climbed more than 142% from its 52-week low of ₹183.85, with the company’s market value now at roughly ₹76,863 crore. BSE data cited by the publication put the stock’s price-to-earnings ratio at 11.38 times and return on equity at 42.60%, figures that help explain why the name continues to attract both momentum traders and longer-term investors.
Dividend interest is adding another layer to the story. NALCO has fixed August 24 as the record date for its final dividend of ₹1 per share, meaning eligible shareholders must be on the register by then to receive the payout. That corporate action comes as aluminium markets remain sensitive to supply disruptions and production cuts abroad. Norsk Hydro’s own updates this year have shown how quickly operations can be affected by gas supply issues, output curbs and market volatility, even as the Norwegian group reported stronger results in the second quarter on firmer prices and product premiums.
Brokerage views remain constructive, though not without caveats. Axis Securities kept a buy rating, arguing that NALCO’s alumina sales volumes should rise in the next financial year and that stronger alumina realisations and higher captive coal use may help offset raw material inflation. Motilal Oswal, meanwhile, noted that recent easing in aluminium prices could limit near-term upside and flagged execution risk around the company’s longer-term expansion plans. Even so, Trendlyne data cited by Goodreturns show a consensus buy call from 13 analysts, underscoring the market’s broadly positive view of the stock despite concerns over costs, geopolitics and project delivery.
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