Nalco Share Price Gains As Q2 Profit Grows Over Five Times

National Aluminium Co.'s share price climbed 5% on Thursday, a day after the company reported a strong second quarter earnings beat, driven by favourable aluminium prices and cost efficiencies.

The board has also approved an interim dividend of Rs 4 per share (80% of the face value) for the fiscal. 

• Revenue up 31.4% at Rs 4,001 crore versus Rs 3,044 crore.

• Ebitda at Rs 1,549 crore versus Rs 397 crore.

• Ebitda margin at 38.7% versus 13%.

• Net profit at Rs 1,046 crore versus Rs 187 crore.

Motilal Oswal maintained a 'neutral' rating on Nalco, raising the price target to Rs 420 per share, reflecting a potential upside of 91%. The brokerage cited higher fiscal 2025 forecasts for revenue, Ebitda, and net profit, up 9%, 27%, and 32%, respectively. Growth is also expected from Nalco’s upcoming 1 MT alumina refinery by May 2025 and a strategic lithium mining deal set to diversify its portfolio.

Nalco stock rose as much as 5% during the day to Rs 230.67 apiece on the NSE. It pared gains to trade 2.05% higher at Rs 224.20 apiece, compared to a 0.10% advance in the benchmark Nifty 50 as of 9:48 a.m. 

It has risen 139.21% in the last 12 months and 70.36% on a year-to-date basis. Total traded volume so far in the day stood at 3.9 times its 30-day average. The relative strength index was at 49.88.

Of the 11 analysts tracking the company, six have a 'buy' rating on the stock, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 2.9%.