Shares of state-owned National Aluminium Co Ltd jumped 3 per cent to Rs 77.20, their highest level in three months.
HSBC Global Research has initiated coverage with a “buy” rating and a target price of Rs 90.
“Nalco is benefiting from the unusually high alumina price and although we expect the prices to fall after 2019, this should be offset by a steady rise in aluminium prices as supply continues to tighten,” it says.
“Nalco has limited export exposure to the United States, so the new tariffs imposed by Washington are not a factor.” The stock had fallen 12.8 per cent this year as of last close.