80% Dividend Payout: Multibagger Navratna PSU Metal Stock Nalco Rises Over Inking A Mining Lease

National Aluminium Company (NALCO) witnessed a 1.01% uptick in its stock price to Rs 215.75 on Wednesday following an announcement about securing a mining lease for the amalgamated Utkal-D and Utkal-E coal blocks. This is expected to enhance the company's coal production capacity and strengthen its fuel security.

Mining Lease

In a post-trading hours filing on Tuesday, NALCO confirmed signing the mining lease deed for the Utkal-D and Utkal-E coal blocks located in Angul district, Odisha. The lease, valid until April 21, 2051, is set to increase the company's coal production capacity to 4.0 MTPA (Million Tonnes Per Annum). This development will boost fuel security for NALCO's captive power plant, which supports its aluminium production operations.

NALCO Operations

NALCO, a Navratna Central Public Sector Enterprise (CPSE), is one of India's largest integrated Bauxite-Alumina-Aluminium-Power complexes. With the Government of India holding a 51.28% stake, NALCO operates a robust infrastructure, including its Panchpatmali Bauxite Mines in Koraput, Odisha, an alumina refinery at Damanjodi, and an aluminium smelter and captive power plant at Angul.

Financial Performance

NALCO showcased a strong financial performance for Q2 FY25, reporting a 414.97% surge in standalone net profit to Rs 1,062.18 crore, compared to Rs 206.26 crore in the same period last year. The company's revenue from operations climbed 31.46% year-on-year (YoY) to Rs 4,001.48 crore, up from Rs 3,044 crore in Q2 FY24. This growth was driven by increased demand and effective cost management.

Interim Dividend

To share its financial success, NALCO's board declared an interim dividend of Rs 4 per share during its meeting on November 13, 2024. This represents an 80% payout on the face value of Rs 5 per share, amounting to a total dividend payout of Rs 734.65 crore for FY 2024-25.

Stock Performance

NALCO's stock has been a strong performer, delivering over 88% returns in the past year. In 2024 alone, the stock has surged by nearly 60%. As of 1:55 pm on Wednesday, NALCO shares were trading at Rs 216.88 on the National Stock Exchange (NSE).