NALCO Share Price Declines 3.9 Percent; Major Support at Rs 180
NALCO share price declined further on Tuesday and the stock can take support from Rs 180 levels on the downside. NALCO close 3.9 percent lower and touched an intraday low at Rs 187.20. The stock has declined 9.2 percent over the last one month. With a market capitalization of Rs 34,850 crore, the stock is currently trading at a P/E ratio of 11.23, indicating a potential value opportunity. This article delves into NALCO's recent performance, technical analysis, and key investment insights, providing a detailed roadmap for investors looking to capitalize on the company’s growth prospects.
Performance Highlights: NALCO's Financial Strength
NALCO's financial metrics reflect its strong operational capabilities and consistent shareholder returns. The stock is trading between its 52-week high of Rs 262.99 and 52-week low of Rs 130.25, with the current price around Rs 198.49.
| Metric | Value |
|---|---|
| Open | Rs 198.49 |
| High | Rs 199.00 |
| Low | Rs 187.21 |
| Market Cap | Rs 34,850 crore |
| P/E Ratio | 11.23 |
| Dividend Yield | 4.22% |
| 52-Week High | Rs 262.99 |
| 52-Week Low | Rs 130.25 |
Recent Analyst Reports
Recent reports highlight NALCO’s resilience in maintaining profitability despite fluctuating global aluminium prices
HDFC Securities (December 2024): A "Buy" recommendation with a target price of Rs 230, citing strong operational efficiency and benefits from a weaker rupee, boosting export revenues.
ICICI Direct (January 2025): Upgraded to "Accumulate" with a target price of Rs 225, emphasizing NALCO’s strategic expansion plans in refining capacity and ongoing cost control measures.
Both reports underline the potential for price recovery in aluminium and the company’s consistent dividend payouts as key investment drivers.
Technical Analysis: Candlestick Patterns
NALCO’s daily candlestick chart recently formed a Bullish Engulfing Pattern, signaling a potential reversal from its recent downtrend. The stock bounced strongly from the 187.21 level, confirming buyer interest near key support levels.
Key Takeaway: If the stock closes above Rs 200 on strong volume, it could signal the start of an upward momentum. Investors should monitor for a sustained break above Rs 199-200 to initiate new positions.
Fibonacci Levels
A Fibonacci retracement analysis, drawn from the 52-week high of Rs 262.99 to the recent low of Rs 130.25, reveals the following critical levels:
38.2% Retracement: Rs 197.80
50% Retracement: Rs 196.62
61.8% Retracement: Rs 195.45
NALCO is currently trading near the 38.2% retracement level, suggesting a possible consolidation zone. A breakout above Rs 197.80 could target Rs 210, while support at Rs 195 provides downside protection.
Support and Resistance Levels
The following levels define NALCO's immediate trading range:
Support Levels: Rs 187, Rs 180
Resistance Levels: Rs 199, Rs 210
Actionable Insight: Traders may consider buying near the Rs 187 support level with a short-term target of Rs 199. Long-term investors can aim for Rs 225-230, as per recent analyst projections.
Comparison Table:
| Metric | NALCO | Hindalco | Vedanta |
|---|---|---|---|
| P/E Ratio | 11.23 | 15.5 | 12.8 |
| Dividend Yield | 4.22% | 0.75% | 3.50% |
| 52-Week High | Rs 262.99 | Rs 510.50 | Rs 385.00 |
| 52-Week Low | Rs 130.25 | Rs 360.10 | Rs 245.30 |
Investment Outlook
NALCO’s strong fundamentals, including a 4.22% dividend yield, make it an attractive choice for income-focused investors. The stock is also well-positioned to benefit from any rebound in global aluminium prices, particularly with ongoing supply-demand imbalances in the sector.
For long-term investors, NALCO offers a balanced risk-reward profile, with a target price of Rs 230, as per recent analyst estimates. Short-term traders can focus on technical levels, with a breakout above Rs 199 likely driving momentum toward Rs 210.
