National Aluminium — Steady Growth and Solid Dividends for Investors

National Aluminium Company Ltd (NALCO), founded in 1981, is among India’s leading integrated producers and exporters of alumina and aluminium. With a market cap above ₹34,000 crore, this Navratna PSU serves both domestic and overseas markets with products like ingots, billets, and wire rods. Over the past five years, NALCO’s financial growth has been notable. Revenue rose from ₹8,472 crore in FY20 to ₹16,788 crore in FY25, a solid 15% CAGR. Profits jumped from ₹136 crore to ₹5,268 crore in the same period, driving a remarkable share price rise from ₹35 in August 2020 to ₹187 in August 2025. A ₹1 lakh investment five years back would now be worth nearly ₹5.34 lakh. NALCO rewards shareholders with a healthy ~4.3% dividend yield, far above the 0.11% industry median, backed by a payout ratio of 44%. Frequent interim dividends add to investor confidence. Valuation-wise, a PE of around 6x—well below the sector median of 17x—suggests the stock is attractively priced, offering a margin of safety. Risks remain: aluminium price swings, trade policy changes, and economic slowdowns could impact earnings. The company’s fortunes are also linked to India’s infrastructure push and global demand trends. For shareholders, NALCO presents a strong combination of growth, steady income, and value. While sector volatility can’t be ignored, its consistent track record and disciplined payouts make it an appealing choice for long-term investors seeking both returns and regular cash flow.