Nirman Broking

NALCO: Company Profile

NALCO  is one of the largest integrated Bauxite-Alumina-Aluminium- Power Complex in the Country. At present, the Government of India holds 51.28% of paid-up equity capital. The Company has been operating its captive Panchpatmali Bauxite Mines for the pit head Alumina refinery at Damanjodi, in the District of Koraput in Odisha, and Aluminium Smelter & Captive Power Plant at Angul.  As a part of the green initiative, NALCO has installed 198 MW Wind Power Plants at various locations in India and 800 kWp rooftop Solar Power Plants at its premises to join hands for carbon neutrality.

Since the days of its first commercial operation in 1987, the Company has continuously earned profits for the last 34 years. Despite the Global COVID-19 pandemic, NALCO has posted an impressive net turnover and net profit of Rs.8,869.29 crore and Rs.1,299.56 crore respectively in FY20-21. Globally, NALCO has achieved the distinction of being the lowest cost producer of Bauxite and Alumina in the world as per the latest report of Wood Mackenzie.

The Company has a 68.25 lakh TPA Bauxite Mine & 21.00 lakh TPA (normative capacity) Alumina Refinery located at Damanjodi in Koraput district of Odisha, and a 4.60 lakh TPA Aluminium Smelter & 1200MW Captive Power Plant located at Angul, Odisha.

History of the Company

National Aluminium Company Limited was incorporated on January 7, 1981, as a wholly-owned enterprise of the Government of India. The company commenced its operations by manufacturing aluminum hydrate, calcined alumina, aluminum wire rods, and aluminum ingots. Over the course of the next decade, NALCO Limited moved on to set up bauxite and aluminum mines and further expanded their capacities to boost its production. The company was listed on the Bombay Stock Exchange in 1992 and on the National Stock Exchange in 1999.

Management of the Company

Dr. T. K. Chand presently serves as the Chairman-cum-Managing Director of National Aluminium Company Limited. He has held these positions since July 2015. Under his leadership, the company has reduced its procurement costs by 20%, thus considerably improving its profit margins. He is a veteran of the mining industry and has worked with various reputed organizations over the years. Before joining NALCO Limited, he served as a Director at Rashtriya Ispat Nigam Limited from September 2010 to July 2015. He was also associated with Central Coalfields Limited.

Mr. Dipankar Mahanta is the Independent Director of National Aluminium Company Limited. He has played an important role in developing Amar Seva Sangam from scratch and making it one of the leading organizations that are committed to the rehabilitation and empowerment of people with disabilities. He is also a board member of various non-profit organizations.

Mr. K. C. Samal presently serves as the Director of Finance at National Aluminium Company Limited and also as its Whole-time Director. Mr. Samal has been a part of the finance sector for more than 30 years and is well-versed in audits, accounts, treasury, investors relations, budgeting and control, project finance, capital restructuring, foreign exchange management, et cetera.

National Aluminium Company Limited Listings in NSE, BSE, and Indices

The equity shares of National Aluminium Company Limited are available to the general public for trading. They are listed on the National Stock Exchange and the Stock Exchange of India, Mumbai. The respective codes for the same are as follows:

• NSE Code: NATIONALISM
• BSE Code: 532234
• ISIN: INE139A01034
• Sector: Aluminium

As for the stock market indices, the company does not comprise the country’s two benchmark indices - the Nifty 50 or the BSE Sensex. However, it does form several other important indices such as:

• Nifty 500
• Nifty 200
• Nifty Commodities
• Nifty Full Midcap 100
• Nifty High Beta 50
• Nifty Metal
• S&P BSE PSU
• S&P BSE 500
• S&P BSE 200
• S&P BSE Metal
• S&P BSE Basic Materials

NALCO Share Price Target 2022

During the year 2020, the total world production of Metallurgical Grade Alumina (MGA) was 127.01 Million Tonnes, registering an increase of about 2.55% compared to 123.85 Million Tonnes produced in 2019. Alumina consumption during 2020 was 126.77 Million Tonnes as against 123.26 Million Tonnes consumed during 2019, exhibiting a YoY increase of 2.85%. China was the major contributor in both production and consumption, having a 53.98% share in production and 57.05% share in consumption of Alumina. World MGA demand is expected to be 130.65 Million Tonnes in 2021, representing a YoY increase of 3.06%. Overall, the Alumina market is expected to remain in a surplus of 1.23 Million Tonnes in 2021 with an expected production of 131.88 Million Tonnes.

Total Alumina production in India during the Financial Year 2020-21 was 65.99 Lakh Tonnes, thereby registering a YoY decline of 0.55%. Out of this, NALCO’s contribution was 20.59 Lakhs (31.20%). During FY 2020-21, the aluminum price rally has not been complemented by a corresponding increase in alumina prices, the rally in aluminum prices will have a positive impact on NALCO which results in an increase in NALCO share price target 2022. and alumina price remains weighed down by a well-supplied market and high alumina freight costs between Western Australia and China.

This has caused contrasting fortunes in the margins between both industries. Freight rates have spiked this year due to several reasons, mainly the low availability of containers, congestion at ports, rising demand for consumer electronics and other white goods, and delays caused by the Suez Canal blockage. The tight freight situation is expected to continue till Q4 (October-December, 2021), with congestion in containers to remain for the remainder of 2021. NALCO`s share price target for 2022 is Rs 150.

You can bid more IPO or share Click here.