NALCO Share Price - Strong Q4FY21, favourable metal prices are top triggers for this stock; check what experts have to say

Shares of National Aluminium Company Limited (NACLO) were trading in the red on the BSE around 11:30 am on Tuesday after hitting a 52-week high of Rs 82.50 on an intraday basis. The shares of Nalco were trading at Rs 79.30 around this time, going down by almost 1 per cent. On Monday, Nalco posted strong Q4FY21 results on the back of strong operational performance and favourable prices in the metal sector.

The company reported a nine-fold rise in consolidated net profit at Rs 935.74 cr in Q4 FY21 versus Rs 100.51 cr in Q4FY20. While its consolidated income rose to Rs 2,874.47 cr against Rs 2,042.27 cr on a year-on-year basis.

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The stock has surged nearly 12.5 per cent over the last two trading sessions. It has jumped around 18 per cent in the last five trading sessions. 

Analyst View - NALCO - Market analyst Sacchitanand Uttekar said that NALCO shares are likely to breach their current all-time high level and would reach to levels of Rs 90-95 per share. The strong Q4FY21 are strong triggers that would catapult the NALCO share price to this level, he opined.

NALCO’s Chairman and Managing Director Sridhar Patra said that the company has witnessed a significant recovery in the second half of the financial year of 2020-21 after the peak period of COVID-19 outbreak and with the opening of the markets. 

The stock has surpassed its earlier 52-week high of Rs 82.3 apiece, touched on May 10, 2021. 

Analyst View - NALCO – Brokerage firm Motilal Oswal retains a Buy stance on NALCO shares amid a strong earnings outlook with a target price of Rs 93 apiece. It raises FY22E and FY23E EBITDA estimates by 43 and 27 per cent respectively. In its commentary, the brokerage said that high prices will likely support strong cash flows in the company, going forward.