Government owned Aluminium stock jumps up 10% after announcing 458% increase in net profit in Q2 FY 25. In this article we will give bullet point of Aluminium company which will be helpful is short analysis.
Company Overview
National Aluminium Company Limited (NALCO) was established in 1981 and is engaged in metal mining, refining, smelting, power generation, and logistics. The company generates 74.84% of its revenue from the aluminum segment and the rest, 25.16%, from the chemical segment. NALCO generates 67.18% of its business from the Indian market while the rest, 32.82%, from the rest of the world.
Q2 FY25 Result Update
- In Q2 FY25, National Aluminium’s net profit rose over 458 percent year-on-year (Y-o-Y) to Rs 1,045 crore, as against Rs 187 crore in the same quarter a year ago (Q2 FY24).
- The company’s revenue from operations climbed 31.46 percent annually to Rs 4,001 crore in Q2 FY25, from Rs 3,044 crore in the same quarter last year (Q2 FY24).
- Operating profit was reported at 1,549 crore, with a 290% increase year-on-year and 65.81% quarter-on-quarter.
- The number of shareholders has increased 36.42% annually from 8.69 lakh to 9.13 lakh.
| Sep’24 (Cr) | YoY Change | QoQ Change | |
|---|---|---|---|
| Sales | 4,001 | 31.46% | 40.1% |
| Operating Profit | 1,549 | 290% | 65.81% |
| Net Profit | 1,045 | 458% | 77.76% |
National Aluminium expects demand trends to improve in the second half of the year, supported by favorable conditions.
Price Action
The share price of National Aluminium jumps up 10% after announcing its strong Q2 FY 2025 results. The share price of NALCO was trading at Rs 239.93 in the last trading session on 18 Nov 2024. NALCO share price rallied after the company posted stronger-than-expected Q2 FY25 results, which beat stock market estimates.
The 52-week low of National Aluminium was Rs 90.10, and the 52-week high was Rs 247.
Financial
National Aluminium Company Limited (NALCO) has a market cap of Rs 40,369 Crore with a price-to Earning (P/E) ratio of 13.02, while the sector P/E is 21.32. The company has declared a dividend of Rs 4.00 per equity share with an ex-date on Nov 29, 2024.
Shareholding Pattern
The promoter holding is 51.28% in National Aluminium; FII has a 12.08% shareholding in Sep’24 with a 1.65% increase QoQ. Domestic institution shareholding is 19.27%, with increases of 1.82% YoY. Retail participation is 11.62% with a decrease of -1.56% in the Q2 update.
Stock performance
National Aluminium Company Limited (NALCO) has given 135% returns to its investors in the last year, 120% returns in the last 3 years, and 421% returns in the last five years. NALCO is a mid-cap company with a market capitalization of Rs 40,369 crore. The company has good potential and opportunities to give multi-bagger returns to its investors.
What do brokerages say?
Novuma has upgraded the stock to a buy rating for National Aluminium from an earlier rating while increasing the target price to Rs 550 from Rs 350.
Recently NALCO signed an MoU between Kabil and Oil India for collaboration in projects and exploration. The company will further grow consistently says CEO of the company.
Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.