National Aluminium Company
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
National Aluminium Company (NALCO) is positioned for growth, driven by significant capacity expansion initiatives, including the commissioning of a new alumina refinery and a brownfield smelter project. Management's positive outlook on global aluminum demand, supported by a structural supply deficit, underpins Vista's forecast of accelerating revenue growth and improving margins. However, the company faces challenges from raw material inflation and execution risks associated with its ambitious capital projects. Vista's financial outlook anticipates a 39.8% upside, reflecting the attractive valuation relative to intrinsic value estimates. The non-ferrous metals industry is experiencing a favorable environment, bolstered by rising aluminum prices and strong demand from infrastructure investments. Over the next 12-24 months, key opportunities include the successful integration of new capacity and enhanced raw material security from the Potangi mine. Conversely, watchpoints include potential cost overruns in capital projects and volatility in aluminum prices, which could impact profitability. Overall, NALCO's robust balance sheet and strategic focus on capacity expansion position it well for sustained growth amidst a supportive industry backdrop
Why We Like This Stock
- Significant capacity expansion with the commissioning of a new alumina refinery and smelter project
- Positive outlook on global aluminum demand due to a structural supply deficit
- Strong balance sheet with zero net debt, providing financial stability for growth initiatives
Things To Watch Out For
- Execution risks associated with large-scale capital projects could impact growth timelines
- Inflationary pressures on raw materials may challenge margin expansion
- Volatility in aluminum prices poses a risk to future profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 13,149 | 16,788 | 17,843 | 22,169 | 24,287 |
| Profit Before Tax (Cr.) | 2,285 | 7,077 | 7,749 | 12,262 | 11,778 |
| PBT Margin | 17.4% | 42.2% | 4342.9% | 55.3% | 48.5% |
| Net Profit (Cr.) | 1,641 | 5,220 | 5,729 | 9,088 | 8,729 |
| Earnings Per Share | 8.9 | 28.4 | 31.2 | 49.5 | 47.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 420 | 06-Aug-2026 |
| Emkay Global | ▼ Reduce | 340 | 04-Aug-2026 |
| HSBC | ▲ Buy | 480 | 10-Jun-2026 |
| Kotak Securities | ▲ Buy | 420 | 04-Aug-2026 |
| Motilal Oswal | ► Neutral | 380 | 05-Aug-2026 |
| Prabhudas Liladhar | ► Accumulate | 401 | 04-Aug-2026 |
| UBS | ▲ Buy | 460 | 15-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 aluminum 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 plant in Bhubaneswar, as well as alumina refinery and aluminum smelter plants and captive power plant. In addition, it owns and operates mechanized storage and ship handling facilities for exporting alumina and importing caustic soda. National Aluminium Company Limited was incorporated in 1981 and is based in Bhubaneswar, India.