Why Are Nalco Shares Rising Today? Brokerages Drop Fresh Clues After PSU's Q2 Result. 80% Dividend | Check TP

Nalco Share Price Today: Shares of state-owned National Aluminium Company Limited (NALCO) rallied on Monday, November 10, as investor sentiment turned upbeat following the company's Q2 results for FY2025-26. The Navratna PSU reported a robust 37% year-on-year jump in consolidated net profit to Rs 1,429.94 crore, reflecting improved operational performance and higher realisations.

Nalco shares were trading 8.32% higher at Rs 253.95 per share on BSE with a market capitalisation of Rs 46,797.38 crore at 10 am. The stock had touched an intraday high mark of Rs 254.35 per share on BSE and an intraday low mark of Rs 240.10 per share.

Why Are Nalco Shares Rising Today?

The rally in Nalco shares has come after the state-owned aluminium manufacturer reported a rise in its net profit and strong performance. The company had reported a net profit of Rs 1,429.94 crore in Q2FY26 against Rs 1,045.97 crore reported in the year ago period. Its revenue from operations jumped to Rs 4,292.34 crore against Rs 4,001.48 crore reported in the year ago period.

NALCO Share Price Recommendation

Brokerage Motilal Oswal maintained a 'neutral' rating for NALCO with a target price of Rs 250 per share. NALCO is planning to expand its total capex to Rs 300 billion, which could boost its production capacity. The firm has planned to complete the capex plan by FY30. However, execution risks and cost escalations continue to pose a risk for its development.

While capex expansion plans, strong fundamentals, zero debt, robust demand outlook could favour the company's growth, however, the near-term upside potential is capped due to limited production headroom, US trade tension, on-time execution challenges, and regulatory risks, as per the brokerage.

"We raise our FY26 revenue/EBITDA/PAT estimates by 8/32/34%, while our FY27 estimates are flat/+21%/+25%, incorporating the strong alumina volume growth and favorable LME prices," noted Motilal Oswal.

"We reaffirm BUY rating with a revised TP of INR 280 (earlier INR 262) based on a target multiple of 5.5x 1HFY28E EV/EBITDA," stated Antique Stock Broking.

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