Feb'25 View on National Aluminium Company Ltd

National Aluminium Company Limited (NALCO) manufactures and sells Alumina and Aluminiu. After making high near 260, the stock made a low of 180 recently and again making double bottom and looks to reverse and go beyond 200 and make new high on back of following inputs. * NACL’s Q3FY25 EBITDA was above estimates, led by higher volumes in the alumina division. Alumina prices are normalizing at a rapid pace, with a 40% correction in the past two months. • Further, the company is embarking on a Rs30000 cr capex for a 0.5 mtpa smelter expansion. • NACL’s 3QFY25 EBITDA came in above our estimates at Rs2327.5 cr (+201% yoy, +50% qoq, KIE: Rs2186.6 cr). • NACL will commission a 1 mtpa alumina refinery expansion by Q3FY26E (earlier by H1FY26) and has completed 70% of the project work.