127% Return in 1 Year: Why this multibagger mining PSU stock is rising today; should you invest in it?

NALCO Share Price: National Aluminium Co Ltd (NALCO) jumped by over 4.60 per cent on BSE on Friday (June 14, 2024) after the mining PSU signed a lease agreement with Odisha Government for 698 hectares of Pottangi bauxite mining. 

NALCO shares that closed trading at Rs 186.50 each on Thursday rose by 4.81 per cent on Friday to rise to the day's high of Rs 195.10 apiece.

The stock of NALCO that started the session at Rs 189.45 on Friday closed it up by 2.90 per cent, or Rs 5.40, at Rs 191.00.

Revealing details about the lease agreement, NALCO said that the mines has an annual production capacity of 3.5 million tonnes and has reserves estimated at 111 million tonnes, projecting a mine life of 32 years. 

"Upon obtaining the remaining requisite statutory clearances, the mine is expected to become operational soon. The mined Bauxite would be transported to NALCO Refinery at Damanjodi through an Overland Conveyor of 18.5 Kms. 

"This strategic move ensures a secure supply of raw material for NALCO's existing Refinery and supports future expansions."

NALCO share performance

NALCO shares have jumped by 73.30 per cent in the six months, while 126.16 per cent in the one-year period. 

It has outperformed Nifty 50, which has risen by 10.78 per cent and 25.11 per cent in the one year.

Know Zee Business analyst Nupur Jainkunia's target for NALCO

Zee Business analyst Nupur Jainkunia has given a 'buy' call on NALCO with a target of Rs 190 and stop loss at Rs 184.