National Aluminium Company: Hello, investors! Do you want a reliable company with government support, which is now engaged in this industry? Well, here is some information: this is one of the largest companies among Indians in the metals and mining sector. It pays out dividends every year and is extremely important for the international aluminum market. So, are you Interested? Let’s continue with us to open secrets about such a precious company and reveal why it is so great for your portfolio.

About the Company:

So, here’s the deal: it is the National Aluminium Company Limited (NALCO). It began in 1981. This is a government-owned corporation and one of the largest aluminium makers of India. It falls under the Ministry of Mines.

NALCO does it all: they mine bauxite, refine alumina, smelt aluminum, and generate power. That is why they can keep their costs low and run their operations efficiently. National Aluminium Company Limited (NALCO) stock, based in Bhubaneswar, Odisha, means that its product is important not only in India but also in over 20 countries, making them a global giant!

Do You Want To Know About The Stocks Performance ?

Let’s talk numbers. NALCO is listed on both the NSE and BSE and has a ticker symbol of “NALCO.” Here’s how it’s performing:

• Current share price: ₹253.21 as of November  26th
• 52-week high: ₹263.10
• Week’s Low: ₹91.12
• Market Capital: ₹465.68 billion 
• Price-to-Earnings (P/E) Ratio: 8.5- below the industry average, hence a value investment.
• Dividend Yield ~4%

This stock has offered a 15% return over the last year, and it, therefore, represents a good buy for investors seeking something safe but that still rakes in the profit.

So, what has NALCO done over the years?

• Revenue and profit growth: This results in a net profit of ₹2,952 crores from FY23 revenue of ₹14,182 crores. This is an example that the company can do well on strength in finance but nothing else going for it in the market. 
• Generous Dividends: National Aluminium Company Limited (NALCO) has become known as a company that pays dividends, giving back ₹4 for every market share last year. The 6% dividend yield makes it a good choice for people looking for income. 
• No Long Term Debts: Since the company has no long-term debt, it is stable and able to invest in future growth.

What Does the Future Hold ?

The aluminum industry is gearing up for serious growth, and the reasons behind this are increasing demand in construction, electric vehicles (EVs), and renewable energy. Here is what National Aluminium Company Limited (NALCO) is doing for the future:

• Producer National Aluminium Company Limited (NALCO) is gearing up to increase its alumina production, currently at 4.6 million tonnes a year, with the rise in overseas demand.
• It is also looking at investing in renewable energy-broadening renewable capacity with 1,000 MW additions of solar and wind by 2030, thus getting really into line with the international goals of sustainability.
• International market trends indicate aluminum prices are climbing higher in the international market. Hence, NALCO is to benefit from improved margins and profitability.

Analysts predict that it would grow revenues on an annual basis by 10-12%. This makes it a promising stock for investors with long-term visions.

Risks to watch 

So, the company has solid fundamentals, but there are some risks to watch out for:

• Volatility in Aluminum Prices: Being a commodity producer, its revenues are tied to global aluminium price fluctuations.
• Energy Costs: Its profit margins may vary with high power costs as aluminum production is energy intensive.

Conclusion 

It is not just one PSU stock into the crowd, but a performer with promise. Showing good fundamentals, steady dividends, and a solid growth prospect, this one may well be worth considering within your portfolio. Whether it is for a new investor or for an experienced trader, it stands out to consider. So, what do you guys make of it? Gonna add this one to the watchlist? Hit us up for your thoughts and keep an eye on our website for more stock insights! Happy investing!

(Disclaimer: Demat Dive is not giving any buying advice on any stock. Consult a SEBI registered advisor before investing anywhere.)

National Aluminium Company Limited (NALCO)

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