Shares of National Aluminium Company (NALCO) bucked the market trend on April 3, rising over 5 per cent to a record high of Rs 176.25 on a volume surge.
So far in the day, 4 crore NALCO shares have changed hands on BSE and NSE combined, higher than the 1-week and 1-month average trading volume of 1 crore and 2 crore shares, respectively.
The rally comes after the state-owned firm said it clocked the highest-ever cast metal production of 4.63 lakh metric tonnes in FY24.
NALCO also achieved the highest-ever Bauxite excavation of 76 lakh metric tonnes, and the highest-ever metal sale of 4.70 lakh metric tonnes, surpassing all previous records since inception. In FY24, the company also added a new Aluminium Alloy Ingot (AL59) to its product range.
"Achieving 101.15 per cent capacity utilization, NALCO’s Alumina Refinery has produced 21,24,000 Metric Tonnes of Alumina Hydrate, while the Captive Power Plant has generated a gross 7193.62 million units of power," NALCO said in a statement.
In FY24, the PSU developed and operationalised its Utkal D coal block and has also produced 2 million tonnes of Coal, which is the peak-rated capacity of the mine, according to the company.
NALCO, a Navratna CPSE, is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the country. At present, the government holds 51.28 per cent of paid-up equity capital in the state-run firm.
Metal stocks on a roll
Indian Metal stocks have been in an upgrade following data coming out of China which indicated that the manufacturing sector is seeing a rebound which may lead to a rise in demand for metals.
Vinit Bolinjkar of Ventura Securities told Moneycontrol that aside from a positive manufacturing update from China, the commodities sector is at the start of a structural bull cycle, expected to last eight to 10 years.
Another reason for the rise in metal prices is the global infrastructure thrust and increasing defence spending, which has spurred the demand for metals, Bolinjkar said. As the demand for copper, zinc and lead rises, the supply dries up, causing prices to shoot up.
At 11:11 am, NALCO shares were trading 4.7 per cent higher at Rs 174.05 on the National Stock Exchange (NSE). The stock has rallied over 27 per cent so far this year compared to a 3 per cent rise in the benchmark Nifty 50.
According to Bloomberg data, Nalco has 5 'buy' calls, 2 'hold' and 3 'sell' calls from analysts
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