Current Rating and Its Significance
MarketsMOJO’s 'Strong Buy' rating for National Aluminium Company Ltd indicates a high conviction in the stock’s potential for superior returns relative to its peers. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The upgrade to 'Strong Buy' from 'Buy' on 11 Nov 2025 was accompanied by an increase in the Mojo Score from 75 to 80, reflecting improved confidence in the company’s fundamentals and market prospects.
Here’s How the Stock Looks Today
As of 23 February 2026, National Aluminium Company Ltd continues to demonstrate robust financial health and market performance. The stock has delivered impressive returns, with a 1-year gain of 76.68%, significantly outperforming the BSE500 benchmark over the same period. The year-to-date return stands at 8.45%, while the six-month return is a remarkable 77.60%, underscoring strong momentum in recent months.
Quality Assessment
The company’s quality grade is currently assessed as below average, which may initially seem counterintuitive given its strong returns. This rating reflects certain operational or structural factors that temper the overall quality score. However, it is important to note that National Aluminium Company Ltd maintains a low debt profile, with an average Debt to Equity ratio of zero, indicating a conservative capital structure that reduces financial risk. Additionally, the company has consistently generated a high Return on Capital Employed (ROCE), averaging 33.90%, which signifies efficient utilisation of capital to generate profits.
Valuation Perspective
The valuation grade is considered fair, suggesting that the stock is reasonably priced relative to its earnings and growth prospects. Investors should view this as an indication that the stock is not excessively overvalued, providing a balanced entry point for those seeking exposure to the non-ferrous metals sector. The fair valuation, combined with strong financial metrics, supports the 'Strong Buy' rating by signalling potential for further appreciation without undue risk of overpayment.
Financial Trend and Performance
Financially, the company is rated positively, reflecting a strong upward trajectory in key performance indicators. Operating profit has grown at an annualised rate of 75.57%, demonstrating robust operational efficiency and market demand. The company has reported positive results for nine consecutive quarters, with a 9-month Profit After Tax (PAT) of ₹4,074.57 crores, growing at 27.30%. The half-year ROCE has reached a peak of 41.36%, while the inventory turnover ratio stands at a healthy 8.92 times, indicating effective inventory management and sales velocity.
Technical Analysis
From a technical standpoint, the stock is mildly bearish, which suggests some short-term price consolidation or correction may be underway. Despite this, the longer-term trend remains favourable, supported by strong fundamentals and institutional interest. Institutional holdings account for 32.02% of the stock, reflecting confidence from sophisticated investors who typically conduct rigorous fundamental analysis before committing capital.
Market Position and Rankings
National Aluminium Company Ltd is recognised as one of the top performers in the midcap segment, ranked 8th among midcap stocks and 28th across the entire market universe of over 4,000 stocks rated by MarketsMOJO. This elite positioning highlights the company’s consistent ability to deliver value and outperform peers, making it a compelling choice for investors seeking growth in the non-ferrous metals sector.
Summary for Investors
In summary, the 'Strong Buy' rating reflects a combination of strong financial trends, reasonable valuation, and solid capital efficiency despite a below-average quality grade and mild technical caution. Investors should consider this rating as a signal of the stock’s potential to generate attractive returns over the medium to long term, supported by a stable balance sheet and consistent earnings growth. The current market environment and company fundamentals suggest that National Aluminium Company Ltd remains well-positioned to capitalise on sector opportunities and deliver shareholder value.
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Performance Highlights and Risk Considerations
While the stock’s recent performance has been impressive, investors should remain mindful of sector-specific risks such as commodity price volatility and regulatory changes impacting the non-ferrous metals industry. The mildly bearish technical grade suggests that short-term price fluctuations are possible, and investors should monitor market conditions closely. Nonetheless, the company’s strong institutional backing and consistent earnings growth provide a cushion against market uncertainties.
Outlook and Strategic Positioning
Looking ahead, National Aluminium Company Ltd’s strategic focus on operational efficiency and capital discipline is likely to sustain its growth momentum. The company’s ability to maintain low leverage while delivering high returns on capital is a key strength that supports its current rating. Investors seeking exposure to a midcap stock with solid fundamentals and growth potential in the metals sector may find this stock an attractive addition to their portfolio.
Conclusion
In conclusion, the 'Strong Buy' rating assigned to National Aluminium Company Ltd by MarketsMOJO as of 11 Nov 2025 remains well justified by the company’s current financial health and market performance as of 23 February 2026. The combination of strong financial trends, fair valuation, and institutional confidence makes this stock a compelling opportunity for investors aiming for capital appreciation in the midcap space.
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