NALCO's stock jumped about 7% on Monday, reaching a new high of Rs 352 and continuing a four‑day winning streak.
Why the stock jumped
The rally is linked to a rise in global aluminium prices. The London Metal Exchange price broke the $3,000‑per‑tonne barrier, the highest level in more than three years. Tight supply in China and higher electricity costs in Europe have squeezed inventories, while demand from construction and renewable‑energy projects stays strong.
Aluminium market outlook
Industry experts say the market could face a supply shortfall in 2026‑27 as demand from electric‑vehicle makers, builders, power producers and data‑centre operators keeps growing.
NALCO's recent financial performance
- Q2 net profit rose 36.7% year‑on‑year to Rs 1,430 crore.
- Revenue increased 31.5% to Rs 4,292 crore.
- EBITDA grew 24.8% to Rs 1,933 crore.
- Operating margin improved to 45% from 38.7%.
Growth plans
NALCO is expanding its alumina refinery with a new 1 MTPA stream expected by FY27. It also plans a Rs 30,000‑crore investment for a 0.5 MTPA smelter and a 1,080 MW captive power plant, with spending picking up after FY28.
What investors should note
The combination of higher aluminium prices, strong demand outlook, and NALCO's expanding capacity is fueling investor confidence. The stock has risen about 12% over the past four days, and similar momentum could continue if price trends hold.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.