National Aluminium Company
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
National Aluminium Company (NALCO) is positioned for robust growth, driven by a significant ₹30,000 crore capital investment aimed at expanding its integrated aluminium production capacity. Management's focus on raw material securitization through captive mining is crucial for mitigating commodity price volatility, which supports Vista's forecast of accelerating revenue growth and improving margins. The anticipated commissioning of the 5th Stream Alumina Refinery and the expansion of smelting capacity are expected to enhance production capabilities, aligning with the structural demand tailwinds from sectors such as automotive and renewable energy. However, execution risks related to local community opposition and inflationary pressures on raw materials could pose challenges. The current macro environment, characterized by favorable liquidity and government capex, further supports NALCO's growth trajectory. Over the next 12-24 months, key opportunities include the successful ramp-up of new capacities and the potential for improved pricing due to a projected global aluminium supply deficit. Conversely, watchpoints include the impact of rising input costs and geopolitical tensions that may affect operational efficiency
Why We Like This Stock
- Significant capital investment in capacity expansion is expected to drive revenue growth
- Focus on raw material securitization will help mitigate commodity price volatility
- Favorable macro conditions and structural demand tailwinds support long-term profitability
Things To Watch Out For
- Execution risks related to local community opposition could hinder expansion plans
- Inflationary pressures on raw materials may impact margins
- Potential volatility in global aluminium prices poses a risk to profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,149 | 16,788 | 17,843 | 22,112 | 25,169 |
| Profit Before Tax (Cr.) | 2,285 | 7,077 | 7,749 | 10,355 | 11,268 |
| PBT Margin | 17.4% | 42.2% | 43.4% | 46.8% | 44.8% |
| Net Profit (Cr.) | 1,641 | 5,220 | 5,729 | 7,675 | 8,351 |
| Earnings Per Share | 8.9 | 28.4 | 31.2 | 41.8 | 45.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▼ Sell | 345 | 13-Aug-2026 |
| Motilal Oswal | ► Neutral | 380 | 05-Aug-2026 |
| Emkay Global | ▼ Reduce | 340 | 04-Aug-2026 |
| ICICI Securities | ▲ Buy | 400 | 04-Aug-2026 |
| Kotak Securities | ▲ Buy | 420 | 04-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 401 | 04-Aug-2026 |
| UBS | ▲ Buy | 460 | 15-Jun-2026 |
| HSBC | ▲ Buy | 480 | 10-Jun-2026 |
Company Overview
Show Company Profile
National Aluminium Company Limited engages in the manufacture and sale of alumina and aluminum products in India and internationally. The company operates through Chemical and Aluminum segments. It offers aluminum metal products, such as ingots, alloy ingots, T-ingots, sows, billets, and wire rods; alumina and hydrate products, including calcined alumina and alumina hydrate; zeolite-A products; specialty alumina and hydrate products; and aluminum rolled and chequered sheets products. The company also owns and operates Coal Mine covering an area of 824.316 hectors situated in Chhendipada Tehsil of Angul District; an opencast mine covering an area of 16 square kilometers on Panchpatmali hills of Koraput district in Odisha; a wind power plant with 50.4 MW of generation capacity in Gandikota, Andhra Pradesh; a wind power plant with 47.6 MW of generation capacity at Jaisalmer, Rajasthan; a wind power plant with 50 MW of generation capacity at Devikot, Rajasthan; a wind power plant with 50.4 MW of generation capacity at Sangli, Maharashtra; and a solar power plants, as well as alumina refinery, aluminum smelter plants, and captive power plant. In addition, it provides testing services. National Aluminium Company Limited was incorporated in 1981 and is based in Bhubaneswar, India.