NALCO shares surge over 6% to new all-time high as net profit rises two-fold in Q4, up 118% in 6 months

Shares of NALCO, a PSU firm engaged in alumina and aluminum manufacturing and sales, soared 6.1% to reach a historic peak of ₹206.30 apiece in early morning trading today, driven by the company's robust performance for Q4 and the full fiscal year (FY24).

On Monday, the company reported a 101% YoY surge in its consolidated profit to ₹996.74 crore for the March quarter, propelled by a significant drop in expenses, which declined by 14% YoY to ₹2,720 crore in Q4. This starkly contrasts with the net profit of ₹495 crore reported in the corresponding period last year.

Also Read: How does the BSE 500 index offer exposure to a wide basket of stocks?

For FY24, it reported a PAT of ₹1,988 crore, a 38.63% improvement compared to the previous fiscal year's PAT of ₹1,434 crore. 

The company reported 1.6% YoY drop in revenue from operations to ₹3,663 crore in the March quarter and witnessed a 7.5% YoY decline in revenues to ₹13,399 crore for the full fiscal year.

During the past six months, the company's shares have embarked on a bullish trajectory, soaring from ₹92 apiece to the current trading price of ₹201, marking an impressive multi-bagger rally of 118%. 

This remarkable surge is attributed to the significant uptick in global aluminium prices, driven by supply disruptions and a resurgence in the Chinese economy.

NALCO was a Schedule ‘A’ Navratna CPSE on January 7, 1981. Renowned as one of the largest integrated Bauxite-Alumina-Aluminium-Power Complexes in the country, it currently operates with the Government of India holding 51.28% of its paid-up equity capital.

Also Read: Goldman Sachs raises India GDP growth forecast to 6.7%; sees RBI rate cut in Q4

The company operates its captive Panchpatmali Bauxite Mines to supply the pit-head alumina refinery located in Damanjodi, within the District of Koraput in Odisha, alongside the aluminum smelter & captive power plant situated in Angul, as per its official website.

In a strategic move, the company has established a joint venture company named 'Angul Aluminium Park Pvt Ltd' (AAPPL) in collaboration with the Odisha Industrial Infrastructure Development Corporation (IDCO). This initiative aims to bolster ancillary, upstream, and downstream products related to the aluminum industry, further enhancing its overall value chain.

Also Read: Stocks to buy or sell: Finolex Cables to IOB — Sumeet Bagadia recommends 5 breakout stocks today

In January, Khanij Bidesh India Limited (KABIL), a joint venture between NALCO, Hindustan Copper, and Mineral Exploration, signed an agreement with Argentina's CAMYEN SE to explore and develop five lithium mines, the government announced in a press release. Formed in 2019, KABIL aimed to procure strategic minerals such as lithium and cobalt from international sources.

Also Read: Natco Pharma share price rises 8% to 52 week high post Q4 results

The agreement marked the first lithium exploration and mining project undertaken by an Indian government entity. It granted KABIL permission to initiate exploration and development activities across five lithium brine blocks located in Catamarca, Argentina.

Lithium holds immense significance as a critical mineral for the energy transition, serving as a primary component in lithium-ion batteries utilized in electric vehicles and battery energy storage systems.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.