Nalco Shares Gain Over 13% After Alumina Prices See Sudden Spike

A sudden surge in alumina prices, which have reportedly shot up 15 percent in the past few sessions. It must be noted that the company gets a bulk (almost 80 percent) of its EBITDA from it alumina business.

Shares of National Aluminium Company (NALCO) gained around 13 percent intraday on Thursday as investors cheered the potential financials boost for the company.

Investors cheered the rising aluminium prices, which was largely on the back of supply cuts in China as well as and shortage of supply in the markets of US and European Union (EU), according to a report in The Economic Times.

Further, CNBC-TV18 reported that while this was the reason in the stock’s gain in the recent past, a sudden surge in alumina prices, which have reportedly shot up 15 percent in the past few sessions. It must be noted that the company gets a bulk (almost 80 percent) of its EBITDA from it alumina business.

The channel also reported that the prices must have risen on the back of a bauxite shutdown in China and increase in caustic soda.

The stock has gained over 21 percent in the past one month, while its three-day gain stood at 14 percent.

At 14:59 hrs National Aluminium Company was quoting at Rs 83.75, up Rs 9.65, or 13.02 percent on the BSE. It touched a 52-week high of Rs 84.15.