The National Aluminium Company Ltd (NALCO) saw its share price rise by more than 5% in early trades on Thursday following the announcement of strong Q2 results and an attractive interim dividend.
The stock opened at ₹229.80 on the BSE, up 4.5% from the previous close of ₹219.80, and reached an intraday high of ₹230.75.
Key Price Movements
| Metric | Value |
|---|---|
| Previous Close | ₹219.80 |
| Opening Price | ₹229.80 |
| Intraday High | ₹230.75 |
| Increase (%) | 5% |
The stock has delivered a return of over 139% in the last year, making it a multibagger for investors.
Q2 Results — A Strong Performance
NALCO reported impressive financial results for the quarter ending September 2024, with a significant increase in net profit.
| Metric | Q2 FY24 | Q2 FY23 | Growth (%) |
|---|---|---|---|
| Net Profit | ₹1,062 crore | ₹206 crore | 415% |
| Total Income | ₹4,001 crore | ₹3,044 crore | 32% |
The company’s net profit zoomed 415%, driven by strong demand and improved operational efficiency. NALCO’s total income from operations also rose by 32%, reflecting robust business growth.
Dividend Announcement — What You Need to Know
NALCO’s Board of Directors approved an interim dividend of ₹4 per share (80% on the face value of ₹5 each), amounting to a total payout of ₹734.65 crore for FY 2024-25. The dividend payment is scheduled for December 11, 2024.
Dividend Details:
| Dividend Per Share | Record Date | Payment Date |
|---|---|---|
| ₹4 | November 29, 2024 | December 11, 2024 |
The attractive dividend payout is expected to boost investor sentiment and support the stock price in the short term.
Investment Outlook — Is NALCO a Good Buy?
With its strong Q2 performance, rising profitability, and consistent dividend payouts, NALCO presents a compelling investment opportunity.
Analysts are bullish on the stock, expecting continued growth driven by increased demand for aluminium and government support for the metals sector.
Expert Recommendations:
- Buy for Long-Term Growth: The strong financial performance and attractive dividend yield make NALCO a good choice for long-term investors.
- Dividend Play: The interim dividend provides an additional incentive for income-seeking investors.
Final Thoughts: Could NALCO Be a Multibagger?
Given the company’s impressive financial results, consistent dividend payments, and strong market position, NALCO appears to be a solid investment.
For those looking to add a promising stock to their portfolio, NALCO could offer substantial returns in the coming years.
Disclaimer
The content provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.
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