Navratna Nalco Dividend Alert! PSU To Pay 50% Dividend, Stock In Red; Buy Before Record Date?

Navratna Public Sector Undertaking (PSU) National Aluminium Corporation Limited (NALCO) shares fell from the day's high on Monday, days after announcing June quarter results and an update on dividends.

NALCO shares were trading 0.43% lower at 186.6 per share on BSE on Monday at 1:50 pm with a market capitalisation of Rs 34,271.55 crore. The stock had touched an intraday high mark of Rs 189.80 per share and an intraday low mark of Rs 185.95 apiece on BSE on Monday.

The primary manufacturer of aluminium had announced a 50% dividend for its shareholders for the financial year 2024-25. Navratna PSU stock has often enjoyed investors' interest because of its regular dividend payment. Here are the latest Nalco share prices recommendations by brokerages.

Nalco Share Price Recommendation

Nalco reported weaker-than-expected quarterly results for the June quarter, according to brokerage Emkay Global. Soft earnings were led by a correction in Alumina prices owing to the supply-demand balance moving into surplus, with above-normal prices leading to a supply deluge.

Emkay Global has trimmed the target price for the stock, but has retained a 'Buy' rating for the stock. "With the upcoming 1mt of alumina expansion in Q1FY27, we expect volume-led growth in FY27/28E. We retain BUY, with our TP trimmed to Rs210 (Rs225 earlier)," noted Emkay Global.

Axis Securities maintained a 'Buy' rating for the stock with a target price of Rs 220 per share. "We value the company at 6.0x Mar'27E EBITDA (unchanged) and 0.5x book value of CWIP (unchanged). The TP of Rs 220/share (Unchanged) implies an upside of 16% from the CMP. We maintain our BUY rating on the stock." Brokerage Motilal Oswal also maintained a 'Buy' rating for the stock with a target price of Rs 190 per share.

Nalco Dividend

Nalco had announced a final dividend of a Rs 5 per equity share with a face value of Rs 10 per share. The company is yet to fix the record date for the dividend. ""The Board of Directors has recommended final dividend @ Rs.2.50/‐ per share (50% on face value of Rs.5/‐ each) for the financial year 2024‐25, subject to the approval of shareholders in the ensuing 44th Annual General Meeting (AGM). The final dividend @ Rs.2.50/‐ per share, as recommended by the Board of Directors, if approved in the ensuing 44th AGM, will be paid within a period of 30 days from the date of declaration, as per the provisions of the Companies Act, 2013," read a BSE filing by NALCO."

The state-run National Aluminium Company (NALCO) had reported a strong 78% year-on-year increase in its net profit to Rs 1,049 crore for the June quarter of financial year 2025-26. The PSU had reported a net profit of Rs 588.42 crore in the June quarter of FY25.

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