Nalco shines bright

Volumes have spiked up sharply on the counters of National Aluminium Company Ltd (NALCO), a Navratna PSU. Almost 4 lakh shares have changed hands today compared to 94,000 over two-week average. The stock figures currently amongst the top three gainers of the day, up over 8% intra day at Rs.40.50.

The reason for this sudden interest in a PSU and that too metal, is the company stating that it has received USD 8.05 million towards an out of court settlement from an US Firm in connection with a case pending in the US Court. No more details of this, neither the case nor the name of the company has been given by the PSU. But the market is happy that it has received money and ended some long drawn case, that too settling in its favour.

The company has not ended Q2FY16 on a very encouraging note. Its net profit for the quarter fell 34% (YoY) at Rs.226 crore while total income declined 9% at Rs.1815 crore.

Govt of India holds 80.93% stake, institutions hold 12.42%. Interestingly, Hindalco has a 1.11% stake.