This govt stock gained 14%; Do you own it? Should you buy?
This PSU surged by nearly 14% today by touching an intraday high of Rs 70.50 per piece. It has a grand plan to turn into a Rs 12,000 cr company, which has forced investors to sit up and take notice.
While entire benchmark Sensex indices had tumbled by nearly 500 points, it was the metal stocks where investors had showered most love. The S&P BSE Metal index has surged by more than 530 points so far in today’s trading session. On the index, there was one state-owned company, where investors did heavy buying. It was government owned National Aluminum (NALCO) company, which gained extremely on markets. NALCO surged by nearly 14% today by touching an intraday high of Rs 70.50 per piece. The company, however, was trading at Rs 68.75 per piece up by Rs 6.70 or 10.80% at around 1456 hours. The reason behind investors being so upbeat was because the company unveiled a new business plan.
Addressing the Unions, Associations, members of Management and Employees of NALCO, Chairman Dr. Tapan Kumar Chand on October 01, unveiled a new business plan acronym "NALC0:3-4-5", which envisages increasing NALCO's 3-digit profit figure to 4-digits and 4-digit turnover to 5-digits.
NALCO has already achieved 4-digit figure at Rs 1342 crore in 2017-18 and is likely to achieve more than Rs 1600 crore in 2018-19. The objective is to further increase and sustain the profit at 4-digit level. Similarly, turnover of NALCO for the first time in 2018-19 will be in 5- digits.
It is expected that the net turnover of NALCO during this current year will be more than Rs 12,000 crore.
Dr Chand said said, “Under this plan, NALCO will turn into a hardcore business organisation with complete focus on business excellence.”
He further added, “With the emergence of the 4 th Industrial Revolution, Artificial Intelligence, Internet of Things, Robotics, Augmented Reality etc. would be the trend setters and NALCO is all set to lead this revolution. The new technology: Industry 4.0, will bring in substantial reduction in capital investments and Indian Industries needs to leverage it to remain globally competitive. NALCO is gearing up in full steam to meet this challenge"
Dr. Chand announced that in the near future, NALCO plans to spend around Rs I 00 crores under its CSR arm in the areas of healthcare, literacy, infrastructure, water management and women empowerment in Koraput District.
In order to motivate performance amongst employees, CMD Dr. Chand presented Excellence Awards to 41 employees across various levels of the organisation.