Shares of National Aluminium Company (NALCO) jumped nearly 8% to the day’s high of Rs 152.35 on the NSE on Wednesday after the company reported a 137% quarter-on-quarter (QoQ) jump in its December quarter net profit at Rs 488 crore. In the previous quarter, the company had reported a profit after tax (PAT) of Rs 206 crore.

The company also announced its second interim dividend for the financial year 2023-24 at Rs 2 per share.

The price action was accompanied by strong volumes with nearly 3.60 crore shares changing hands on the NSE around 10:15 am. The total traded value of the share stood at Rs 528.56 crore. The uptick in today’s session has broken the stock’s five-session losing streak.

The total income in Q3 of FY24 was reported at Rs 3,398 crore compared to Rs 3,358 crore in Q3 of FY23.

The net profit for the nine months ended December 2023 stood at Rs 1,044 crore as against Rs 1,023 crore reported in the corresponding nine-month period of the last year.

On the production front, NALCO has achieved strong growth with the highest ever cumulative metal production of 3,45,086 MT while on the sales front, the company has also achieved the highest ever cumulative metal sale of 3,49,419 MT, during the first nine months of the current fiscal, the company filing on Monday said. NALCO has delivered returns of over 90% in the past 12 months significantly outperforming the Nifty which has given an impressive 20% return during this period. The counter is currently trading above its 50-day and 200-day simple moving averages (SMAs). Today’s price action has dragged the stock in an overbought zone with MFI hovering at the 71 mark according to the Trendlyne data. Meanwhile, RSI which is another momentum indicator remained in the medium range of 50. A number above 70 indicates that the stock is in an overbought zone while below 30 means it is trading in the oversold territory.

Brokerage Axis Securities has revised its rating upwards from Hold to Buy for a price target of Rs 160 which implies a 13% upside. “We value the company at 7.0x FY26E EBITDA from 4.5x FY25E and 0.5x book value of CWIP (Capital Works-in-Progress),” Axis said, calling its Q3FY24 earnings “robust” on lower input costs. The company’s revenue, EBITDA and PAT beat its estimates.

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