This Rakesh Jhunjhunwala-backed PSU stock likely to witness 15% upside in next 3 months; potential to grow as multibagger stock: Report

Ace investor Rakesh Jhunjhunwala-backed this public sector company has huge potential to grow from current levels and to become a multibagger stock, a domestic brokerage ICICI Direct said in report.  

ICICI Direct has termed National Aluminium Company (NALCO) in its 'Gladiators Stocks' category and give a Buy recommendation at 97-102 per share levels with target price of Rs 116 per share (15% upside) in the next three months. The brokerage house suggests a stop loss of Rs 91 per share. 

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NALCO is a government-owned company having integrated and diversified operations in mining, metal and power under the ownership of Ministry of Mines. The government holds controlling stake of over 51 per cent in the aluminium company.  

In the September quarter, the celebrity investor Rakesh Jhunjhunwala had picked around 1.4 per cent stake (25,000,000 equity shares) in the PSU metal company, as per the shareholding pattern of the company available on the BSE. The total value in terms of current price is Rs 257.9 crore. 

Rakesh Jhunjhunwala, who is also termed as the Big Bull of the Indian share market, along with his wife Rekha and associates publicly holds around 38 stocks in finance to tech and retail to pharma sectors, also manages the asset firm Rare Enterprises.     

In the last one year, the stock has outperformed the markets by around 115 per cent, as compared to over 24 per cent rise in the S&P BSE Sensex.  

The stock touched a day’s high level of 104 per share intraday and is trading down around 2 per cent an hour before market close to Rs 101.35 per share as compared to 0.7 per cent surge in the BSE Sensex at around 02:21 pm on Tuesday. 

The stock had hit its 52-week high of Rs 124.75 per share on October 18, 2021.