This Rakesh Jhunjhunwala stock zoomed 297% in one year! What should investors do now?

Shares of National Aluminum Co. Ltd (Nalco) have delivered multi-bagger return to its shareholders in the last 12 months. In the past one year, the share price of Nalco jumped from Rs 31.4 to Rs 124.75 mark ---- logging around 297 per cent return in this period.
 
This is a fresh investment by Dalal Street veteran Rakesh Jhunjhunwala, whose name was not there in the list of big shareholders in the previous shareholders' data.
 
Speaking at the 19th edition of the India Today Conclave 2021, the billionaire market maven said that his stock buying decisions are solely based on the risk-reward ratios.
 
According to the shareholding pattern for September 2021, Rakesh Jhunjhunwala held a 1.36 per cent stake or 2,50,00,000 shares in the company.
 
The stock has been gaining for the last 5 days and has risen 26.99 per cent during the same period. It rose 16 per cent to hit a new 52-week high of Rs 124.75 on the Bombay Stock Exchange(BSE) today.
 
With a market capitalisation of more than Rs 22,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages.
 
Technical View
 
"National Aluminium has provided a breakout from a double bottom pattern on a larger time frame which is quite positive for the long term. The crucial support now on the lower side is 98 and till it continues to trade above those levels the overall view will remain bullish," Jay Thakkar, VP and head of equity Research at Marwadi Shares and Finance Limited told BusinessToday.In.
 
He noted that the momentum indicator MACD is also well in the favour of the Bulls both for the long term as well as medium term.
 
Mr. Manoj Dalmia, Founder and Director, Proficient Equities Private limited told BusinessToday.In, "We note higher bottom formations on the daily chart. 100 DMA has been a good support and prices never dipped below it in the past one year. RSI (14) is approaching overbought territory but that by no means is a bearish statement."
 
He added that the uptrend is likely to continue and dips till Rs 105 and Rs 96 can be used to enter the stock.
 
According to MarketsMojo, the company has a low Debt to Equity ratio (avg) at -0.25 times and has declared Positive results for the last 4 consecutive quarters.
 
The technical trend has improved from Mildly Bullish on September 28, 2021, and the stock is technically in a Bullish range now. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and OBV.
 
However, it noted that the stock is trading at a premium compared to its average historical valuations and with an ROE of 12.2, it has an Expensive valuation.
 
Nalco reported a significant rise in consolidated profit at Rs 347.73 crore for the quarter ended on June 30, 2021. Profit in the year-ago period stood at Rs 16.69 crore. The consolidated income increased to Rs 2,506.29 crore from Rs 1,413.92 crore in the year-ago period.
 
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.