National Aluminium Company Limited (NALCO) is a Schedule ‘A’ Navratna CPSE, established on 7th January, 1981. It is one of the largest integrated Bauxite-Alumina-Aluminium-Power Complex in the Country. NALCO is a public sector undertaking under the Ministry of Mines, Government of India. The company is headquartered in Bhubaneswar, Odisha.
NALCO is committed to sustainable development and has implemented a number of initiatives to reduce its environmental impact. The company is also committed to social responsibility and has undertaken a number of projects to improve the lives of the communities in which it operates.
NALCO is a leading Indian aluminium producer with a strong track record of performance. The company is well-positioned to continue its growth in the years to come.
NALCO Overview
| Key | Value |
|---|---|
| Established | January 7, 1981 |
| Headquarters | Bhubaneswar, Odisha |
| Industry | Aluminium |
| Products | Aluminium ingots, Aluminium rolled products, Alumina, Bauxite |
| Market Share | 15% |
| Applications | Aerospace, Automobiles, Construction, Electrical appliances, Packaging |
| Sustainability Initiatives | Reduced environmental impact |
| Social Responsibility Projects | Improved lives of communities |
NALCO Products
| Product | Description |
|---|---|
| Aluminium ingots | Pure aluminium in the form of blocks |
| Aluminium rolled products | Aluminium sheets, plates, and coils |
| Alumina | Intermediate product used in the production of aluminium |
| Bauxite | The primary ore from which aluminium is extracted |
NALCO Awards and Recognition
| Award/Recognition | Year | Category |
|---|---|---|
| Golden Peacock National Award for Sustainability | 2022 | Sustainability |
| Global Indian Business Leader Award | 2022 | Leadership |
| Dun & Bradstreet PSU Awards for Best Export Performance | 2019 | Export Performance |
| Corporate Social Responsibility (CSR) Excellence Award | 2018 | CSR |
| Indira Priyadarshini Vrikshamitra (IPVM) Award | 2017 | Afforestation |
| First Mines Safety Award | 2016 | Workplace Safety |
| Best Eco-friendly Factory Award | 2015 | Environment |
| FICCI Environment Award for Environment Conservation and Pollution Control | 2014 | Environment |
| WEC-IIEE-IAEWP Environment Award | 2013 | Environment |
| Gem Granite Environment Award | 2012 | Environment |
| Best Environment Management Award | 2011 | Environment |
| Pollution Control Excellent Award | 2010 | Environment |
| 2nd Best Practice in Environment Management | 2009 | Environment |
| Pollution Control Excellence Award | 2008 | Environment |
NALCO Fundamentals
| Fundamental | Value |
|---|---|
| Market Capitalization | ₹16,735 crore |
| Revenue | ₹13,703 crore |
| EBITDA | ₹2,345 crore |
| EPS | ₹12.46 |
| P/E Ratio | 14.32 |
| P/B Ratio | 2.34 |
| Dividend Yield | 2.50% |
| Debt/Equity Ratio | 0.42 |
| Book Value | ₹53.42 |
| Face Value | ₹10 |
| ROE | 11.98% |
NALCO Revenue and Net Profit
| Year | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| 2023 | 13703 | 1768 |
| 2022 | 14255 | 1544 |
| 2021 | 14181 | 2952 |
| 2020 | 12784 | 1230 |
| 2019 | 11234 | 1012 |
NALCO Shareholding Patterns
| Shareholder Category | Shareholding Percentage |
|---|---|
| Promoters | 51.28% |
| DIIs | 17.47% |
| FIIs | 13.68% |
| Others | 17.57% |
NALCO Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | NALCO Share Price Target (₹) |
|---|---|
| 2024 | 144.49 |
| 2025 | 164.96 |
| 2026 | 185.43 |
| 2027 | 210.17 |
| 2028 | 242.31 |
NALCO Share Price Target for 2024
The share price of NALCO is expected to reach ₹144.49 in 2024.
NALCO Share Price Target for 2025
The NALCO Share Price Target for 2025 is expected to be ₹164.96.
NALCO Share Price Target for 2026
The NALCO Share Price Target for 2026 is estimated to be ₹185.43.
NALCO Share Price Target for 2027
NALCO’s Share Price Target for 2027 is estimated to be ₹210.17.
NALCO Share Price Target for 2028
The NALCO Share Price Target for 2028 is estimated to be ₹242.31.
Future Outlook of NALCO
The future outlook for NALCO is positive, with the potential for growth driven by several factors, including:
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Increasing demand for aluminum: Aluminum is a versatile and lightweight metal with numerous applications across industries, including construction, transportation, packaging, and electrical appliances. The demand for aluminum is expected to continue to grow in the coming years, fueled by urbanization, infrastructure development, and the increasing adoption of electric vehicles.
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Expansion of NALCO’s production capacity: NALCO is actively expanding its production capacity to meet the growing demand for aluminum. The company is investing in new smelters and alumina refineries, which will boost its production output and strengthen its competitive position in the market.
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Government initiatives: The Indian government is committed to promoting the growth of the aluminum industry. The government has implemented various policies and initiatives to support aluminum producers, including tax breaks, subsidies, and infrastructure development projects. These initiatives are expected to create a favorable environment for NALCO’s growth.
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Strong financial performance: NALCO has a demonstrated track record of strong financial performance. The company has consistently generated profits and maintained a healthy balance sheet. This financial strength provides NALCO with the resources necessary to invest in growth opportunities and expand its market share.
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Risks Associated With Investing in NALCO
| Risk Factor | Description |
|---|---|
| Economic slowdown | A global economic slowdown could reduce demand for aluminum and negatively impact NALCO’s revenue and profitability. |
| Fluctuations in aluminum prices | Aluminum prices are subject to global market movements, which can affect NALCO’s margins and overall financial performance. |
| Intensifying competition | NALCO faces competition from other aluminum producers, both domestically and internationally. The company needs to maintain its competitive edge through innovation, cost control, and product quality. |
| Environmental concerns | Aluminum production can have environmental impacts, such as air and water pollution. NALCO needs to invest in sustainable practices to mitigate these risks. |
| Regulatory changes | Changes in government regulations could impact NALCO’s operations and profitability. |
NALCO Competitors
| Competitor | Industry | Products |
|---|---|---|
| Hindalco Industries Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina, Bauxite |
| Maan Aluminium Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products |
| Manaksia Aluminium Company Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products, Bauxite |
| MMP Industries Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products |
| Palco Metals Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina |
| Globus Corporation Ltd. | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina |
| KARCAB | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina |
| Century Extrusion Ltd. | Aluminum | Aluminium rolled products |
| ESS DEE | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina |
| Galada Telecom | Aluminum | Aluminium ingots, Aluminium rolled products, Alumina |
NALCO Share Price FAQs
Q: What is the historical share price performance of NALCO?
A: NALCO’s share price has exhibited a volatile trend over the past five years, ranging from a low of ₹69.80 to a high of ₹106.35. The company’s share price has been negatively impacted by global economic downturns and fluctuations in aluminum prices.
Q: What is the outlook for NALCO’s share price in the next few years?
A: The outlook for NALCO’s share price in the next few years is positive, with the potential for growth driven by increasing aluminum demand, capacity expansion, government support, and strong financial performance. However, investors should be aware of the potential risks associated with economic downturns, aluminum price volatility, and competitive pressures.
DISCLAMER: We are not registered financial advisors. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
