NALCO was listed on the NSE/BSE on April 28, 1999. In the last five years, its stock has given a massive return of more than 460% to its investors. Will NALCO continue to provide such great returns in the future as well? Let’s explore NALCO’s growth potential and NALCO share price target from 2025 to 2050 in this article.
About NALCO
The National Aluminium Company Limited (NALCO) is a Navratna Public Sector Company that works for the Indian Ministry of Mines. It was founded on January 7, 1981, and its head office is in Bhubaneswar, Odisha. NALCO is India’s biggest aluminium maker. It also has mining, metal, and power businesses that work together. One of the biggest bauxite mines in India is run by a company in Panchpatmali, Odisha. It also has a mill in Damanjodi and a smelter and power plant that it owns in Angul.
NALCO Business Model
- Sales of Alumina: NALCO sells alumina to customers in the aluminium business both in the United States and other countries after refining bauxite into it.
- Sales of Aluminium: NALCO makes aluminium goods like ingots, billets, wire rods, and rolled products. These are sold to end users in many different industries and bring in a lot of money for the company.
- Export Operations: NALCO sells its goods in other countries, which brings in more money and makes the company more visible in global markets. One example is that the company made ₹4,275.73 crore in exports in FY 2023–24.
NALCO Fundamental Analysis
| Stock Name | National Aluminium Company Ltd. |
|---|---|
| NSE Symbol | NATIONALUM |
| Market Cap | ₹ 28964 Cr. |
| 52W High | ₹ 263 |
| 52W Low | ₹ 147 |
| Stock P/E | 7.34 |
| Book Value | ₹ 86.3 |
| Dividend Yield | 5.07 % |
| ROCE | 17.0 % |
| ROE | 12.6% |
| Face Value | ₹ 5.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 51.28% | 51.28% | 51.28% |
| FIIs | 15.95% | 8.99% | 14.13% |
| DIIs | 13.30% | 18.82% | 17.99% |
| Public | 19.48% | 20.93% | 16.60% |
| No. of Shareholders | 6,62,340 | 8,76,645 | 9,12,049 |
Key Factors Driving NALCO’s Future Growth
- Plans to increase capacity: NALCO wants to increase its smelting capacity to 1.1 million tonnes and its refining capacity to 3.27 million tonnes by 2024. It wants to make a profit after taxes (PAT) of ₹1,693 crore and sales of ₹18,171 crore.
- Growth into New Sectors: NALCO wants to expand its business by going into conductors and lithium-ion batteries, as well as industrial mining of bauxite and chromite.
- Joint Ventures to Secure Raw Materials: To make sure it has a steady supply of essential raw materials, NALCO has made joint ventures, such as with Gujarat Alkalies and Chemicals Ltd. to build a caustic soda plant.
- Operational Excellence: In FY 2023–24, NALCO had record production, including the highest-ever bauxite extraction of 7.6 million tonnes and metal sales of 4.7 lakh tonnes, which shows how efficient their operations were.
- Important Coal Block Development: NALCO turned on the Utkal-D coal block and produced 2 million tonnes of coal in its first year. This made the country’s energy security better and less reliant on energy from other countries.
- Financial Performance: In FY 2023-24, NALCO recorded a net profit of ₹2,060 crore and revenue from operations of ₹13,149 crore. This shows that the company’s finances are in good shape and will allow it to make investments in the future.
- Long-Term Planning Vision: NALCO’s Corporate Plan 2032 sets the goal of making ₹31,248 crore in sales and ₹3,010 crore in profit before taxes (PAT) by 2032. This plan makes it clear how the company will continue to grow.
- Focus on Lower Integration: NALCO is supporting downstream businesses by running projects like the Angul Aluminium Park, which adds value and makes the company more visible in the market.
- Beneficial Mining Practices: NALCO’s work to build and open bauxite and coal mines, like the Pottangi Bauxite Mines, protects raw materials for the long term and ensures activities that last.
- Commitment to Atmanirbhar Bharat: As part of its commitment to Atmanirbhar Bharat, NALCO works to promote industry growth and economic resilience, which supports India’s goal of becoming self-sufficient.
Pros of NALCO
- Low PE Ratio Compared to Peers: NALCO’s PE ratio is 7.34, which is lower than the industry average of 24.9, making it relatively undervalued and potentially a good investment opportunity.
- Debt Free Company: NALCO is almost debt free company with a debt to equity ratio of 0.01, which shows its financial stability.
- Increase in FIIs Holding: Foreign Institutional Investors (FIIs) have increased their holding to 14.13% in December 2024 from 12.08% in September 2024, which indicates growing confidence in the NALCO future potential by the FIIs.
Cons of NALCO
- Poor Sales Growth – NALCO has delivered a poor sales growth of 3% over the last five years.
- Decrease in DIIs Holding: Domestic Institutional Investors (DIIs) have reduced their holding to 17.99% in December 2024 from 19.29% in September 2024, indicating a decline in DII’s confidence in the company’s future growth prospects.
| Years | Target Price |
|---|---|
| NALCO Share Price Target 2025 | ₹200 to ₹240 |
| NALCO Share Price Target 2026 | ₹240 to ₹320 |
| NALCO Share Price Target 2027 | ₹290 to ₹400 |
| NALCO Share Price Target 2028 | ₹340 to ₹540 |
| NALCO Share Price Target 2029 | ₹410 to ₹700 |
| NALCO Share Price Target 2030 | ₹500 to ₹900 |
| NALCO Share Price Target 2035 | ₹1000 to ₹2730 |
| NALCO Share Price Target 2040 | ₹2000 to ₹8180 |
| NALCO Share Price Target 2050 | ₹8000 to ₹49100 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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