National Aluminium Co. Ltd. (NATIONALUM) AI Stock Analysis

• Market Cap: ₹746.04B
• Dividend Yield: 3.62%
• Average Volume (3M): 704.46K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.47
• Revenue Growth: 30.80%
• EPS Growth: 97.08%
• Country: IN
• Employees: 4,858
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 8.69
• Shares Outstanding: 1,836,631,800
• 10 Day Avg. Volume: 1,001,892
• 30 Day Avg. Volume: 704,460
• PEG Ratio: 0.04
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 6.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 83 Outperform
• Price Target: ₹473.00 ▲(43.22% Upside)

Score is driven primarily by very strong financial performance (high margins, low leverage, strong cash flow growth) and supported by attractive valuation (low P/E and solid dividend yield). Technicals are bullish on trend but tempered by clearly overbought momentum signals, which adds near-term pullback risk.

Positive Factors

High Profitability Margins

Sustained high gross (69.38%) and net (31.37%) margins reflect efficient production and strong cost control across the integrated value chain. These margins underpin durable cash generation and reinvestment capacity, supporting long-term profitability and resilience through cycles.

Very Strong Balance Sheet

Minimal leverage (D/E 0.01) and a high equity ratio provide substantial financial flexibility and low refinancing risk. This capital structure supports sustained capex, dividend policy and strategic investments, improving the company's ability to weather commodity cycles and fund growth over months-to-years.

Robust Cash Generation

Very strong free cash flow growth (335.66%) and operating cash covering net income (OCF/NI 1.10) indicate excellent cash conversion. Reliable, growing FCF supports maintenance and expansion capex, debt reduction and shareholder returns, strengthening long-term operational and financial resilience.

Negative Factors

Commodity Price Exposure

Heavy dependence on global aluminium and alumina prices creates structural earnings volatility. Long-term swings in metal prices driven by global supply-demand, geopolitical shifts or slower industrial activity can materially compress revenue and margins regardless of operational efficiency.

Energy Intensity and Input-Cost Risk

Aluminium smelting is highly energy-intensive; captive power helps but does not eliminate exposure. Persistent or rising fuel costs, carbon pricing, or regulatory changes affecting power economics can structurally increase unit costs and pressure margins across multi-quarter horizons.

Concentrated Commodity Business

Revenue concentration in alumina and aluminium limits diversification. This structural focus ties performance to cyclical end-market demand and commodity cycles, reducing the company’s ability to offset downturns with higher-margin or non-commodity businesses over the medium term.

National Aluminium Co. Ltd. Business Overview & Revenue Model

Company Description

National Aluminium Company Limited manufactures and sells alumina and aluminum products in India and internationally. It operates through Chemicals and Aluminium segments. It offers aluminum metal products, such as ingots, alloy ingots, T-ingots, sows, billets, and wire rods; alumina and hydrate products, including calcined alumina and alumina hydrate; zeolite-A products; specialty alumina and hydrate products; and aluminum rolled products and aluminum chequered sheets. The company also owns and operates an opencast mine covering an area of 16 square kilometers on Panchpatmali hills of Koraput district in Odisha; a wind power plant with 50.4 MW of generation capacity in Gandikota, Andhra Pradesh; a wind power plant with 47.6 MW of generation capacity at Jaisalmer, Rajasthan; a wind power plant with 50 MW of generation capacity at Devikot, Rajasthan; a wind power plant with 50.4 MW of generation capacity at Jath, Maharashtra; and a solar power plant in Bhubaneswar. In addition, it owns and operates mechanized storage and ship handling facilities for exporting alumina and importing caustic soda. National Aluminium Company Limited was founded in 1981 and is based in Bhubaneswar, India.

How the Company Makes Money

NATIONALUM generates revenue through multiple streams primarily centered around the production and sale of aluminium products. The company sells its products to a diverse range of industries, including construction, automotive, aerospace, and electrical sectors. Key revenue streams include the sale of aluminium ingots, which serve as raw material for various downstream industries, and value-added products like rolled and extruded aluminium, which command higher margins. The company also benefits from long-term contracts and partnerships with major clients, ensuring a steady demand for its products. Additionally, NATIONALUM engages in export activities, tapping into international markets to further enhance its revenue. Factors such as efficient production processes, cost management, and a strong brand presence in the market contribute to its overall financial performance.

National Aluminium Co. Ltd. Financial Statement Overview

Summary

Strong fundamentals: revenue grew 28.44% YoY with high profitability (gross margin 69.38%, net margin 31.37%). Balance sheet is very strong with minimal leverage (debt-to-equity 0.01) and solid ROE (29.57%). Cash generation is robust with free cash flow up 335.66% and operating cash flow exceeding net income (OCF/NI 1.10).

Income Statement

National Aluminium Co. Ltd. has shown robust revenue growth with a 28.44% increase in total revenue for the year ending 2025 compared to 2024. The gross profit margin is strong at 69.38%, indicating efficient production and cost management. Net profit margin has improved significantly to 31.37%, showcasing effective cost control and profitability. EBITDA and EBIT margins are also healthy at 45.23% and 58.75%, respectively, reflecting solid operational performance.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.01, indicating minimal reliance on debt financing. The equity ratio is high at 77.84%, signifying a stable capital structure with significant equity financing. Return on Equity (ROE) is impressive at 29.57%, demonstrating effective use of shareholders' equity to generate profits.

Cash Flow

Cash flow performance is strong, with substantial free cash flow growth of 335.66% from the previous year, driven by higher operating cash flows and efficient capital expenditure management. Operating cash flow to net income ratio of 1.10 indicates that the company is generating sufficient cash from operations to cover its net income. Free cash flow to net income ratio of 0.88 further supports the strong cash generation capability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	177.38B	167.88B	131.49B	142.57B	142.15B	89.56B
Gross Profit	124.33B	117.64B	70.93B	64.77B	90.94B	51.64B
EBITDA	81.37B	75.49B	28.58B	24.52B	45.50B	17.90B
Net Income	57.29B	52.68B	19.88B	14.35B	29.51B	12.99B
Balance Sheet
Total Assets	0.00	228.82B	192.35B	176.27B	172.76B	147.09B
Cash, Cash Equivalents and Short-Term Investments	59.42B	59.42B	27.14B	21.62B	36.55B	19.08B
Total Debt	0.00	1.82B	963.80M	1.05B	771.00M	1.02B
Total Liabilities	-178.05B	50.77B	48.47B	45.00B	47.23B	40.30B
Stockholders Equity	178.05B	178.05B	143.88B	131.26B	125.52B	106.79B
Cash Flow
Free Cash Flow	0.00	46.31B	11.67B	-6.26B	27.65B	9.81B
Operating Cash Flow	0.00	58.06B	27.19B	9.08B	40.50B	21.99B
Investing Cash Flow	0.00	-39.71B	-20.00B	-3.34B	-27.36B	-14.04B
Financing Cash Flow	0.00	-17.58B	-7.39B	-9.23B	-11.14B	-6.01B

National Aluminium Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 330.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NATIONALUM, the sentiment is Positive. The current price of 330.25 is below the 20-day moving average (MA) of 366.33, above the 50-day MA of 313.81, and above the 200-day MA of 223.99, indicating a bullish trend. The MACD of 24.21 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 78.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NATIONALUM.

National Aluminium Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATIONALUM	83 Outperform	₹746.04B	12.20	―	3.62%	30.80%	97.08%
NMDC	75 Outperform	₹716.62B	10.20	―	4.05%	20.05%	15.58%
JINDALSAW	73 Outperform	₹115.88B	10.26	―	1.18%	-13.69%	-30.57%
SAIL	73 Outperform	₹643.33B	25.17	―	1.21%	6.45%	1.13%
MAHSEAMLES	68 Neutral	₹68.65B	8.17	―	1.82%	0.81%	-7.11%
HINDCOPPER	64 Neutral	₹611.84B	107.70	―	0.33%	16.05%	41.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

National Aluminium Co. Ltd. Corporate Events

NALCO Schedules Earnings Call to Discuss Q3 and Nine-Month FY2025 Performance

National Aluminium Company Limited has informed the stock exchanges that it will hold an earnings conference call on Friday, 30 January 2026 at 17:00 hours to discuss the company’s business and outlook following the announcement of its unaudited financial results for the quarter and nine months ended 31 December 2025. The company noted that the call may be changed or cancelled in case of exigencies and specifically clarified that no unpublished price sensitive information will be shared during the discussion, underscoring its adherence to disclosure norms under SEBI regulations and its focus on transparent communication with investors and stakeholders.

NALCO Announces Share Transfer to IEPF

National Aluminium Company Limited has announced the publication of a notice regarding the transfer of shares to the Investor Education and Protection Fund (IEPF) as per the Companies Act, 2013. This move is part of compliance with regulatory requirements, ensuring transparency and adherence to corporate governance standards, which may impact shareholder interests and the company’s regulatory standing.

NALCO Awards Major Contract for Pottangi Bauxite Mines Development

National Aluminium Company Limited has awarded a significant MDO contract to M/s. Dilip Buildcon Limited for the development and operation of the Pottangi Bauxite Mines, including the Overland Conveyor Corridor and allied facilities. This contract, valued at Rs. 5,032 crore, spans a period of 25 years and is expected to enhance NALCO’s operational capabilities and strengthen its position in the aluminium industry. The contract’s awarding to a domestic entity underscores NALCO’s commitment to leveraging local expertise and resources.

NALCO Holds Earnings Call to Discuss Q2 Financial Results

National Aluminium Company Limited held an Earnings Conference Call on November 7, 2025, to discuss the company’s business outlook following the release of its unaudited financial results for the second quarter ending September 30, 2025. The company confirmed that no unpublished price-sensitive information was shared during the call, and the audio recording is available online for stakeholders. This transparency in communication reflects NALCO’s commitment to regulatory compliance and provides stakeholders with insights into its operational strategies and financial health.

NALCO Reports Record-Breaking Financial and Production Performance in FY 2025-26

National Aluminium Company Limited (NALCO) has reported a record-breaking financial and production performance for the second quarter and first half of the fiscal year 2025-26. The company achieved a 35% year-over-year increase in net profit for Q2, reaching Rs. 1433 crore, and a 50.15% increase for the first half, totaling Rs. 2497 crore. NALCO also set new production records for alumina hydrate, calcined alumina, and aluminium cast metal, alongside achieving its highest-ever sales figures for alumina and domestic metal sales. This outstanding performance underscores NALCO’s strong operational capabilities and enhances its competitive positioning in the aluminium industry.