Archive · 19 Nov 2025
Undervalued PSU Giant Nalco Showcases Strong Q2, Expansion Plans
Nalco, a PSU metals company, had a great second quarter with increased sales and profits.
Despite this, its stock price is low.
The company plans to expand, which could make its stock price go up in the future.
It also pays a dividend to its shareholders.
Nalco delivers best-ever Q2 and H1 performance
Trading at single-digit earnings multiples despite strong fundamentals
Alumina sales jump 39% in Q2, revenue grows 7% YoY
Expansion projects worth ₹30,000 crore underway, to be funded with cash and debt
Dividend yield of approximately 4.5%
- Who
- National Aluminium Co. Ltd (Nalco)
- What
- Delivered strong Q2 and H1 performance, plans expansion
- When
- Q2 FY26 and H1 FY26
- Where
- India
- Why
- To increase capacity and profitability
Bullish View
Bearish View
Valuation
Bullish View
Undervalued at current levels
Bearish View
May remain low due to cyclical nature of business
- Stock Price
- Trading at 7.85 times earnings
- Debt
- Carries no debt, has nearly ₹80 bn of cash
- Expansion Projects
- 1 mtpa alumina refinery expansion and 0.5 mtpa aluminium smelter
- Dividend Yield
- Approximately 4.5%
- ROE in FY25
- 32.3%