When it comes to safe investments in equity, PSUs lead from the front. One of those gems is NALCO. In this blog post, we will analyze the NALCO share and set NALCO’s share price target for 2024, 2025, 2026, and up to 2050.
Knowing the target price makes it easy for investors to plan and manage their portfolios because they now have at least an idea of the returns they can expect from their investments. It doesn’t mean that you need to depend solely on the target prices because they are never guaranteed.
Whether it’s NALCO (NATIONALUM) or any other share that you are about to pick for investment, do your own analysis before putting your money in it. It will help you psychologically as well because emotions are always there to drive your investment journey. And, when you have done your analysis, you know exactly what you are doing.
Without further ado, let’s get started and check out NALCO’s fundamentals followed by the target prices.
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About NALCO
NALCO, short for the National Aluminium Company Limited, was established in 1981 as a public sector company in India. The company engages in a variety of businesses, including mining, metal production, and power generation. The Government of India (GOI) holds a 51.5% stake in the company, making it a PSU (Public Sector Undertaking) that falls under the administration of the Ministry of Mines.
According to a Wood McKenzie report, NALCO is recognized as the world’s lowest-cost producer of metallurgical-grade alumina and bauxite. Additionally, NALCO stands as one of Asia’s largest integrated primary producers of aluminum. The company is involved in every stage of the value chain, from bauxite mining and alumina refining to aluminum smelting, power generation, and the production of downstream products.
National Aluminium (NALCO) Stock Fundamental Analysis
Data As of 17th November 2023
Current Market Price | Rs. 92.8 |
Market Cap | Rs. 17,046 Crore |
P/E Ratio | 12.6 |
EPS | 7.35 |
52 Week High | Rs. 106 |
52 Week Low | Rs. 69.8 |
Book Value | Rs. 74.1 |
Dividend Yield | 4.85% |
ROCE | 15.1% |
ROE | 12% |
Promoters Holding | 51.28% |
FIIs Holding | 13.68% |
DIIs Holding | 17.47% |
Public Holding | 17.57% |
NALCO shows some moderate sales and profit growth figures. Its compounded sales growth is 8% for the past 10 and 5 years, 19% for the last 3 years, and -14% in the most recent one year. Meanwhile, the company’s profit has experienced a CAGR (Compound Annual Growth Rate) of 11% over the past 10 years, 17% over 5 years, an impressive 124% over the last 3 years, and a decline of -48% in the last year.
Looking at the historical returns the stock has provided to investors, it has grown with a CAGR of 9% over 10 years, 7% over 5 years, 36% over 3 years, and 23% in the last year.
While these numbers may not be highly aggressive, it’s worth noting that PSU (Public Sector Undertaking) stocks often exhibit this kind of performance. Under the Modi government, PSUs have performed well, and this trend is expected to continue, especially with the anticipation of the Modi government’s return in 2024.
NALCO Share Price Target 2024 to 2050
Predicting short-term share prices is relatively manageable, but forecasting long-term prices, especially until 2050, is highly challenging due to the inherent uncertainties in the market. Therefore, I strongly advise against blindly trusting target prices without a solid underlying theory.
Once you’ve made an investment, it’s crucial to continuously monitor the company’s performance and make decisions based on its ongoing results. Our NALCO share price forecast for the years 2024 to 2050 is derived from predicting the company’s revenue and profit growth, with the share price adjusted accordingly based on these growth rates.
It’s important to note that the target prices provided in the table below do not account for potential future adjustments in the stock price, such as bonus adjustments, share splits, and other factors. The timing of such announcements by the company is uncertain, and therefore, these adjustments are not reflected in the given target prices.
![nalco share price target 2024 to 2050](https://sharekingz.com/wp-content/uploads/2023/11/nalco-share-price-target-1024x588.webp)
Year | NALCO Stock Target Price |
2024 | Rs. 120 |
2025 | Rs. 145 |
2026 | Rs. 166 |
2027 | Rs. 186 |
2028 | Rs. 216 |
2029 | Rs. 255 |
2030 | Rs. 296 |
2031 | Rs. 352 |
2032 | Rs. 405 |
2033 | Rs. 473 |
2034 | Rs. 582 |
2035 | Rs. 664 |
2036 | Rs. 717 |
2037 | Rs. 810 |
2038 | Rs. 883 |
2039 | Rs. 1,042 |
2040 | Rs. 1,167 |
2041 | Rs. 1,330 |
2042 | Rs. 1,556 |
2043 | Rs. 1,821 |
2044 | Rs. 2,112 |
2045 | Rs. 2,260 |
2046 | Rs. 2,576 |
2047 | Rs. 3,040 |
2048 | Rs. 3,557 |
2049 | Rs. 3,948 |
2050 | Rs. 4,383 |
Factors Affecting NALCO Share Price
Several factors can influence the share price of NALCO (National Aluminium Company Limited) in the future. It’s important to note that the stock market is influenced by a variety of factors, and predicting share price movements involves some degree of uncertainty. Here are some key factors that can affect NALCO’s share price:
Global Aluminium Prices
NALCO’s revenue is heavily dependent on the prices of aluminium in the global market. Any significant changes in international aluminium prices can impact the company’s profitability and, consequently, its stock price.
Bauxite and Alumina Prices
Since NALCO is involved in bauxite mining and alumina refining, fluctuations in the prices of these raw materials can affect the company’s production costs and profit margins.
Demand for Aluminium
The demand for aluminium products, especially in key industries such as construction, automotive, and aerospace, can influence NALCO’s sales and financial performance. Economic conditions and industrial activity globally play a role in determining the demand for aluminium.
Operational Efficiency
NALCO’s operational efficiency and cost management practices can impact its competitiveness and financial health. Improvements in efficiency may positively influence the company’s profitability and, consequently, its stock price.
Government Policies and Regulations
Being a public sector company with majority ownership by the Government of India, changes in government policies, especially those related to the mining and metal industry, can impact NALCO’s operations and financials.
Global Economic Conditions
Economic conditions worldwide can affect NALCO’s business. A slowdown in global economic growth may lead to reduced demand for aluminium, affecting both prices and sales volumes.
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FAQs Related to NALCO Share Price Prediction
Is it good to buy NALCO share?
NALCO is a government-owned company. It has provided moderate returns in the past and is expected to perform similarly in the future. So, if you seek such kind of safe returns, you can invest in NALCO stock.
Does NALCO give dividend?
Yes, NALCO pays dividend to investors on regular basis.
Conclusion
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Disclaimer: We don’t provide investment or trading recommendation. This website is for educational purpose only.
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