4.91% Dividend Yield: Navratna Stock NALCO Declares 20% Dividend; Buy?

Founded on January 7, 1981, National Aluminium Company Limited (NALCO) is a Schedule 'A' Navratna CPSE with its registered office situated in Bhubaneswar. It is among the nation's largest integrated facilities of bauxite, alumina, aluminium, and power. The company has announced its interim FY24 dividend as well as its quarterly performance.

NALCO Dividend

"We would like to inform that, the Board of Directors in their meeting held today i.e. 09.11.2023 have approved payment of interim dividend @ Re.1/‐ per share (20% on Face value of Rs.5/‐ each) on the paid‐up equity share capital of Rs.918.32 crore for the financial year 2023‐24. The Company has fixed Wednesday, the 22nd November, 2023 as Record Date for payment of above Interim Dividend for the financial year 2023‐24 to the eligible shareholders whose name appear: a) As beneficial owners as at the end of the business hours on Wednesday, the 22nd November, 2023 as per the beneficial owners position to be downloaded by NSDL and CDSL in respect of the shares held in the demat form and; b) As members in the Register of Members of the Company, after giving effect to transmission/transposition if any, in physical form lodged with the Company on or before Wednesday, the 22nd November, 2023. The payment of interim dividend shall be made on or before 07.12.2023 to all eligible shareholders, whose names appear in the Register of Members as on Record Date," said NALCO in a stock exchange filing.

National Aluminium Company has announced a 90.00% equity dividend, or Rs 4.5 per share, at a face value of Rs 5 for the fiscal year ended in March 2023. With the current share price of Rs 91.57, this translates into a 4.92% dividend yield. The business has a strong dividend history and has paid out dividends on a regular basis over the previous five years. Trendlyne data shows that from August 22, 2000, National Aluminium Company Ltd. has issued 45 dividends.

NALCO Q2 Results

The government-owned National Aluminium Company Ltd. (Nalco) said on Thursday that its consolidated revenue for the September quarter grew by 49.3% to Rs 187.35 crore. According to a statement issued by Nalco to the BSE, the company reported a consolidated profit of Rs 125.43 crore for the same period last year. Nonetheless, the company's consolidated income for the July-September quarter dropped to Rs 3,112.02 crore from Rs 3,558.85 crore in the corresponding period last year. On a standalone basis, the company reported a net sales of Rs 3,043.42 crore in Q2FY24 down 12.79% from Rs. 3,489.57 crore in Q2FY23. Its standalone net profit stood at Rs. 206.26 crore in Q2FY24 up 15.23% from Rs. 403.63 crore in Q2FY23.

NALCO Share Price Target

Ameya Ranadive CMT CFTe-Equity Research Analyst at Choice Broking said, "NALCO, currently trading at 91, has exhibited a resilient performance despite a recent 15% correction from its 52-week high of 106. The stock has established a robust support level at 87, showcasing its ability to weather market fluctuations. Notably, since October 2022, NALCO has consistently found support along a discernible trendline, demonstrating its technical strength. Investors have observed a historical pattern of rebounds from this trendline, underscoring its significance in influencing the stock's trajectory."

"Key technical indicators further support the bullish sentiment. The Relative Strength Index (RSI) stands at 43, indicating a neutral stance and leaving room for potential upward movement. Additionally, the Average Directional Index (ADX) at 18 signals promising momentum in the stock's favor. These factors collectively suggest that NALCO may be poised for an upward trajectory," said the analyst.

"Given the recent price action and the technical backdrop, there appears to be a favourable setup for a potential move in the range of 102 to 110. Investors and traders may find this an opportune time to consider a strategic entry into NALCO, leveraging the observed support levels, trendline dynamics, and the positive momentum indicated by the RSI and ADX," added Ameya Ranadive.

Disclaimer

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