National Aluminium Company Limited

Basic Materials — Aluminum · NSE

₹324.25+₹5.85 (+1.84%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of National Aluminium Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

National Aluminium Company Limited engages in the manufacture and sale of alumina and aluminum products in India and internationally. The company operates through Chemical and Aluminum segments.

IndustryAluminum

SectorBasic Materials

Employees4,864

Annual revenue₹17,729 Cr

How does it make money?

Turns over ₹17,729 Cr a year. Of every ₹100 of sales, about ₹33 reaches shareholders as profit, with ₹48 left at the operating level before interest, tax and depreciation. Each of its 4,864 employees supports ₹3.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 33.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE18.7%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 6.9% and earnings to grow about 1.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.9%

Est. earnings growth+1.3%

Analysts11

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +25% while net margin moved +223% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+25%

Margin effect+223%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.74 — historically steadier than the index
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

80/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.8x

3Y Median

14.8x

40 monthly readings · mean 15.4x · range 6.5x–24.9x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 3y median of 14.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 27% below the peer median of 12.2x.

vs. its own history

Cheap

14.8x median over 40 months · -40%

vs. sector peers

Cheap

12.2x median of 4 peers · -27%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.9x

PEG

0.15

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 18.9% to 48.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 10.9% to 26.8%.
Return on capital is rising
ROCE has improved from 12.5% to 33.3%.
High return on capital employed
ROCE of 33.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 93% over 3 years, from ₹105 Cr to ₹202 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 135% against revenue up 25% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 33.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 18.9% to 48.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 40% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹4,400 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 135% against revenue up 25%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 46%✓ 48.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 39.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹4,400 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 30%✓ 33.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹59,553 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

8.8x

Cheap

Cheap against the generic band

P/B Ratio

2.76x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹36.76

Profitable

Profitable on a per-share basis

ROE

26.8%

Strong

Strong capital efficiency

ROCE

33.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

39.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

91.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.23%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹4,400 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

8.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

47.6%

Good

Healthy core-business profitability

Net Margin

34.9%

Good

Strong bottom-line conversion

Current Ratio

3.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.74

Defensive

Steadier than the market

52W Range Position

46%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

336.6 / 363.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,171 Cr	₹13,070 Cr	₹16,662 Cr	₹17,729 Cr	+7.8%
EBITDA	₹2,677 Cr	₹3,044 Cr	₹7,888 Cr	₹8,579 Cr	+47.4%
EBITDA Margin	18.9%	23.3%	47.3%	48.4%	—
PAT (Net Profit)	₹1,435 Cr	₹1,988 Cr	₹5,268 Cr	₹5,797 Cr	+59.3%
EPS	₹7.81	₹10.83	₹28.68	₹31.56	+59.3%
ROE	10.9%	13.8%	29.6%	26.8%	—
ROCE	12.5%	17.0%	36.7%	33.3%	—
Total Debt	₹105 Cr	₹96 Cr	₹311 Cr	₹202 Cr	+24.5%
Free Cash Flow	-₹626 Cr	₹1,071 Cr	₹4,605 Cr	₹4,400 Cr	—

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 47.4% a year over 3 years.

🟢 EBITDA Margin has risen from 18.9% to 48.4% over 3 years (+29.5 pts).

🟢 PAT (Net Profit) has grown at 59.3% a year over 3 years.

🟢 EPS has grown at 59.3% a year over 3 years.

🟢 ROE has risen from 10.9% to 26.8% over 3 years (+15.9 pts).

🟢 ROCE has risen from 12.5% to 33.3% over 3 years (+20.8 pts).

🔴 Total Debt has grown at 24.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹626 Cr to ₹4,400 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26,544 Cr

Total Liabilities

₹4,941 Cr

Cash & Equivalents

₹153 Cr

Operating Cash Flow

₹6,438 Cr

Capex

-₹2,038 Cr

Shareholding (proxy)

Institutional Holding

21.7%

Insider Holding

51.3%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹4

Ex-Dividend Date

24 Aug 2026

Analyst Consensus

Recommendations

7 Buy · 2 Hold · 4 Sell

Target Price (Mean)

₹410

+26.4% vs CMP

Target Range

₹340 – ₹480

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

5 mixed1 general

Nalco, Vedanta Aluminium, To Hindalco: Metal Stocks Crash Continues! Brokerage Says 'Sell Aluminium Names'

Goodreturns, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

National Aluminium Company Share Price News and Analysis

Univest, 15 Oct

NALCO Yearly Results, Financial summary, NALCO Yearly Earnings

The Economic Times, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Vedanta Aluminium, Nalco, Hindalco shares: Aluminium price falls but Emkay sees up to 53% upside

Business Today, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why NALCO Share Price is Falling

Equitymaster, 07 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

National Aluminium Company Ltd. (NATIONALUM) Share Price Rise Streak: second straight session with Rs 326.85

Univest, 14 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑