NALCO gains 3% after CMD lays roadmap for the next 3 decades

Shares of National Aluminium Company Limited (NALCO) jumped 3 percent in the morning trade on January 10 after chairman and managing director (CMD) Sridhar Patra laid out the roadmap to drive growth and sustainable business for the next three decades.

At the company’s 44th Foundation Day, Patra said the ongoing expansion of refinery and plans for expanding smelter were propelled with operationalisation of allotted coal blocks and receiving of the statutory clearances for Pottangi Bauxite mines.

In his address, Patra said the efforts of the past 43 years and constant pursuit of excellence succeeded in creating a formidable business enterprise like NALCO and the company has always striven to do better than the previous set benchmarks.

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“The past three years have witnessed significant achievements and have brought new laurels to the company. Backward integration and securitization of energy and bauxite has increased the business span of the organisation for the next 30 years,” he said.

Nalco is a Navratna public-sector undertaking (PSU) under the Ministry of Mines. It operates its captive Panchpatmali bauxite mines for the pit-head alumina refinery, and aluminium smelter and captive power plant at Angul in Odisha.

For the September quarter, NALCO reported a 49.3 percent increase in consolidated profit at Rs 187.35 crore. Its consolidated income, however, dropped 13 percent YoY to Rs 3,112.02 crore.

At 9.51 am, NALCO shares were trading 2 percent higher at Rs 131.20 on the National Stock Exchange (NSE). In the past year, the stock has rallied around 57 percent, outperforming benchmark Nifty 50 which has risen around 20 percent during this period.

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NALCO stock is trading near its 52-week high Rs 139.85, hit on January 2. It has maintained a bullish trend since the low in September 2022, indicating positive momentum, Vidyan Sawant, AVP Technical Research at GEPL Capital, said.

Dips towards the short-term 12-week exponential moving average (EMA) and 26-week EMA consistently act as crucial support levels, contributing to the bullish stance. The stock is expected to move towards Rs 147 mark, he said.

“It is recommended to set a stop-loss at Rs 121, strictly based on the closing basis,” Sawant said.

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