Nalco Receives 'Buy' Rating and Shows Strong Performance in Aluminium Industry

National Aluminium Company (Nalco) has been making waves in the aluminium industry with its impressive performance and strong fundamentals. Recently, the stock received a 'Buy' rating from MarketsMOJO, a leading stock analysis platform, on 26th September 2024.
One of the key reasons for this upgrade is the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a strong financial position and stability for the company. Additionally, Nalco has declared positive results for the last 3 consecutive quarters, with a significant growth in PBT and PAT.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its technical trend. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

Another positive aspect for Nalco is its high institutional holdings at 29.55%. This shows that institutional investors have a better understanding and analysis of the company's fundamentals, making it a favorable investment option.

In terms of performance, Nalco has outperformed the market (BSE 500) with a return of 117.75% in the last year, while the market has only generated a return of 41.08%. With a market cap of Rs 35,851 crore, Nalco is the second-largest company in the aluminium sector and contributes 17.83% to the entire industry's sales.

However, there are some risks associated with investing in Nalco. The company has shown poor long-term growth with an annual rate of -8.23% in operating profit over the last 5 years. Additionally, with a ROE of 11.6, the stock is currently trading at a premium compared to its historical valuations. The PEG ratio of the company is also at 0.3, indicating a slightly expensive valuation.

In conclusion, Nalco is a strong player in the aluminium industry with a solid financial position, positive performance, and high institutional holdings. However, investors should also consider the risks associated with the stock before making any investment decisions.