nalco share price
There was a decline of about 5 percent in the shares of government aluminum company NALCO on Friday. This decline has come at a time when the company’s shares have given excellent returns of 116 percent to investors in the last one year. Due to this sudden weakness, questions are being raised among investors whether there is any problem in the company’s business or it is just the effect of profit booking. Market experts believe that there are many reasons behind this, but the picture regarding the long-term future of the company still remains strong.
NALCO shares have given strong returns of about 116 percent to investors in the last one year. After such a big rise in any stock, many investors start booking their profits. The biggest reason for the recent decline is profit-booking. A slight decline in the stock after a long period of rise is considered normal and it is not being seen as a weakness of the company.
Pressure on metal sector due to global tension
Increasing geopolitical tension and war-like situations in many parts of the world have increased uncertainty in the commodity market. Its effect has also been seen on metal companies. Investors are worried that the demand for metals may be affected due to weakening of global economic activities. Due to this reason, selling in shares of metal sector increased and a decline of about 2.2 percent was recorded in BSE Metal Index.
Fast pace of work on expansion plans
Despite the fall in the stock, the company is continuously working on its expansion programs. NALCO is increasing the capacity of its alumina refinery. An additional 1 million tonne capacity is being added to the existing 2.1 million tonne per annum capacity, which is expected to be commissioned from June 2026. Apart from this, the company is also preparing to expand its aluminum smelting capacity. Another 0.5 million tonnes will be added to the existing 0.46 million tonnes capacity. Besides, a plan has also been made to set up a 1,080 MW captive power plant to meet the increasing power needs.
Can get big benefit from domestic demand
Investment in infrastructure, automobile, electric vehicle and power sectors is continuously increasing in India. The demand for aluminum is increasing rapidly in these areas. In such a situation, companies like NALCO can get direct benefit from it. Experts believe that due to strong domestic demand, the company may see a long-term increase in sales and earnings.
How was your recent performance?
NALCO shares have fallen by about 7.34 percent in the last five trading sessions. However, the long-term picture still looks strong. The stock touched a 52-week high of Rs 445.10 on April 27, 2026, while its 52-week low was Rs 180.10 on August 4, 2025.
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