Shares of National Aluminium Company Ltd (Nalco) surged 2.11% to trade at ₹214.72 as of 9:29 AM, following an upgrade from Kotak Institutional Equities. The brokerage firm has raised Nalco’s fair value (FV) to ₹235 per share, up from the previous target of ₹160, citing strong positioning in the alumina market.
Kotak highlighted that Nalco is well-placed to benefit from ongoing supply tightness in the alumina market, due to its net long position and rising aluminum prices. Additionally, the commissioning of captive coal mines has significantly reduced costs in FY2024, with further ramp-ups expected to maintain a downward trend in costs.
While the company’s 1 mtpa alumina refinery expansion is progressing slowly, volume contributions are expected by the second half of FY2027. Kotak also raised its alumina and aluminum price forecasts and earnings estimates for Nalco, upgrading its recommendation from ‘Sell’ to ‘Add’ due to the attractive risk-reward balance.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult with a financial expert before making any investment decisions.
