Hindalco and Nalco Shares Surge as Aluminium Prices Reach Four-Year High
Hindalco, Nalco shares jump up to 5% after aluminium prices hit 4-year high. Where is metal headed?
Image: The Economic Times
Shares of Hindalco Industries and Nalco rose up to 5% following a spike in aluminium prices, which hit a four-year high due to tensions from the Iran conflict and potential production cuts in China. Analysts predict sustained demand amid constrained supply.
- 01Hindalco's shares increased by 4.5% to ₹1,154, while Nalco's shares rose 5.1% to ₹437.50.
- 02Aluminium prices on the London Metal Exchange reached $3,672.50 per metric tonne, the highest since March 2022.
- 03Morgan Stanley forecasts strong demand for aluminium driven by sustainability needs and limited supply growth.
- 04Chinese authorities are reviewing energy consumption, potentially leading to production cuts among smelters.
- 05Hindalco has been given an 'Overweight' rating by Morgan Stanley, with a target price of ₹1,325, indicating over 20% upside potential.
Advertisement
In-Article Ad
Shares of Hindalco Industries, part of the Aditya Birla Group, and state-owned Nalco saw significant gains of up to 5% on Wednesday as aluminium prices surged to a four-year high, reaching $3,672.50 per metric tonne on the London Metal Exchange. This increase is attributed to heightened tensions from the Iran conflict and potential production cuts in China, the world's largest aluminium producer. Hindalco's shares climbed 4.5% to ₹1,154, while Nalco's shares rose 5.1% to ₹437.50. Analysts from Morgan Stanley anticipate a supportive medium-term demand-supply outlook for aluminium, driven by sustainability-led demand and constrained supply growth due to China's production caps. The report highlights that the market is tightening due to disruptions in the Middle East and elevated energy costs, which are likely to keep prices firm. Morgan Stanley has initiated coverage on Hindalco with an 'Overweight' rating and a target price of ₹1,325, suggesting a potential upside of over 20% from its previous closing price.
Advertisement
In-Article Ad
The rise in aluminium prices is likely to benefit Hindalco and Nalco, potentially leading to increased revenues and investment in the sector.
Advertisement
In-Article Ad
Reader Poll
What do you think will happen to aluminium prices in the coming months?
Connecting to poll...
More about Hindalco Industries

Hindalco Industries Reports Strong Q4FY26 Results Driven by Aluminium and Copper Prices
Business Standard • May 26, 2026

7-Eleven Founder Toshifumi Suzuki Passes Away; Singapore Inflation Declines; Hindalco Reports Strong Aluminium Margins
Moneycontrol • May 25, 2026

Brokerages Update Recommendations on Key Stocks: Sun Pharma, LTIMindtree, NTPC and More
Ndtv • May 25, 2026
Read the original article
Visit the source for the complete story.



