National Aluminium Company Ltd. shares fell nearly 5% on Thursday after the state-run aluminium manufacturer said coal shortages have severely impacted its aluminium production.
NALCO shares opened at Rs 40.40 against the last close of Rs 41.65 on the BSE and later dropped 4.68% to Rs 39.7 apiece. Today's low is mere 2.8 points above from the 52-week low of Rs 36.90, recorded on August 23, 2018. As per market depth data on BSE, there was 53% buying against 47% selling in the stock.
National Aluminium currently trades lower than its 5, 20, 50, 100 and 200-day moving averages. Although the trend of the stock is in line with the 'Aluminium sector' that has fallen by 2%, NALCO stock underperforms the sector by 2.09%. NALCO share value has deteriorated nearly 40% year-to-date, 11% in one month and over 4% in one week.
NALCO's BSE filing read, "Short supply of coal has severely impacted Aluminium production of NALCO and also the cost of power'. Nalco's requirement of coal for its CPP at Angul is around 17,000 tonnes per day. Out of this, Nalco's CPP is receiving around 8,000 - 9,000 tonnes per day and there is a shortfall of around 7,000 - 8,000 tonnes per day.
As the coal supply position is not improving, the state-run aluminium manufacturer may be forced to further shut down up to 227 numbers of electrolytic pots in phases, depending upon the power generation in CPP, matching with coal receipt.
Presently, three units of CPP, each of 120 MW capacity are under shutdown and further one more unit will undergo shutdown due to coal shortage.
NALCO's filing added that Unions and Associations have appealed to MCL, Coal India Ltd. and Ministry of Coal to ensure increased coal supply to NALCO to tide over the situation.
As of 1200 IST, shares of National Aluminium Company were trading 4% lower at Rs 40 on the bourses, with a total of 87.75 lakh shares on BSE and NSE changing hands on the counters.
By Rupa Burman Roy