This multibagger Rakesh Jhunjhunwala stock is on a roll; here’s why

Shares of National Aluminum Co. Ltd (NALCO), a part of Big Bull Rakesh Jhunjhunwala's portfolio, are in focus due to the surge in the prices of aluminium amid the ongoing Russia-Ukraine crisis.
 
Russia accounts for around 6 per cent of global primary aluminium production and is also one of the major exporters of aluminium.
 
The stock has delivered a multibagger return to its shareholders in the last 12 months. In the past one year, the share price of NALCO jumped from Rs 62 to Rs 130.6 mark ---- logging around 110 per cent return in this period.
 
NALCO's share price jumped 3.77 per cent to hit a new 52-week high of Rs 130.6 on Thursday. With a market capitalisation of more than Rs 23,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
 
Brokerage house ICICI Securities noted that in the current calendar year itself, aluminium prices have increased 18 per cent. In addition to healthy demand, an uptick in aluminium prices is also supported by the recent Russia and Ukraine conflict.
 
"The share price of National Aluminium has been in a steady uptrend. Earlier during the year, in October 2021, it generated a breakout above its four-year range signalling a structural turnaround," it said.
 
It further added that the stock has remained resilient during recent market correction and the entire up move since October 2020 is well channelled signalling sustained demand and incremental buying opportunity at the lower band of the rising channel. It has recently rebounded taking support at the lower band of the rising channel, thus offering fresh entry opportunities.
 
"We expect the stock to head higher towards Rs 134 as it is the 138.2 per cent external retracement of immediate breather (128-109)," the brokerage house added.
 
For December quarter, the company's consolidated profit surged over three times to Rs 830.67 crore. The company had posted a profit of Rs 239.71 crore for the year-ago period.
 
Income during the quarter increased to Rs 3,845.25 crore over Rs 2,414.95 crore in the year-ago period, NALCO said in a filing to BSE.
 
According to the shareholding pattern for December 2021, Rakesh Jhunjhunwala held a 1.36 per cent stake or 2,50,00,000 shares in the company.

NALCO is a Navratna CPSE under the Ministry of Mines. The company has integrated and diversified operations in mining, metal and power. The Centre holds 51.28 per cent equity of NALCO.