NALCO stocks hit record high today: Here we decode why
What's the story
Stocks of National Aluminium Company Limited (NALCO) have hit a record high of ₹351 per share, gaining 6.1% in a day. The surge is mainly due to the rise in global aluminum prices and the company's strong performance. This is the fourth consecutive day of gains for NALCO's stock, which has performed well in five out of six recent trading sessions.
Stock comparison
NALCO's performance outshines Sensex
NALCO's stock has outperformed the Sensex by a huge margin, delivering nearly 60% returns in the last year. The Sensex, on the other hand, has only managed an 8% return during this period. The company is debt-free and continues to post strong profits with a market cap of ₹64,460 crore.
Growth strategy
Profits and expansion plans
NALCO has seen its profits rise for the eighth consecutive quarter, with cash flow and earnings hitting new highs. The company is also expanding its operations to meet the rising demand from electric vehicles and tech infrastructure. It is currently expanding its refinery and planning new smelters to capitalize on the next wave of aluminum demand.
Market trends
Global aluminum prices hit 3-year high
The global market for aluminum has hit a three-year high, with prices on the London Metal Exchange (LME) crossing $3,000 per ton for the first time since 2022. The surge is due to a cap on Chinese smelting capacity and European production constraints caused by rising electricity costs. High demand from the construction and renewables sectors has also contributed to this trend.