Navratna PSU company NMDC Limited (NSE: NMDC) is going to give 2 bonus shares to investors on the existing 1 share.
This is the company’s first bonus share in 16 years. NMDC’s outlook remained strong in the second half of FY 2025.
A renowned brokerage has suggested buying at a target price of Rs 294. The shares of the company are currently trading at Rs 221.
What Is The Detail
During the trading on November 19, NMDC’s stock closed at Rs 221.15, down 0.72% on the BSE. Its market cap stood at Rs 64,831 crore.
The 52-week highs and lows of the stock are Rs 286.35 & Rs 167.30 per share. The stock has a stable return on equity of 22.01%. YTD, the stock has gained 10% so far on the BSE.
NMDC Bonus Shares
NMDC has disclosed the awarding of Bonus shares to its shareholders in the ratio of 2:1.
This means that investors who hold one share of the company till the record date will be given two additional shares.
Let us tell you that after 16 years, NMDC is distributing bonus shares for the second time. Earlier, NMDC had distributed bonus shares to investors in a ratio of 2:1 in May 2008.
September Quarter Results
NMDC’s net profit consolidated has been boosted by Rs 16.66 percent to 1,195.63 crores during its July-September period of the current fiscal year.
The company’s net income during the same quarter of the previous year was 1,024.86 crore.
NMDC has told the stock market that its overall earnings have been up 22 % to Rs 5,279.68 crore in the September quarter which was Rs 4,335.02 crore in the same quarter of the previous fiscal year.
NMDC which is part of the Ministry of Steel, is the largest mining enterprise, which can meet around 20 percent of the nation’s needs for the most important raw material used in steelmaking.
Quick Fact
Company name: NMDC
| Company name | NMDC |
|---|---|
| Bonus shares | 2 for 1 |
| Time since last bonus | 16 years |
| Previous bonus shares | 2 for 1 (May 2008) |
| Brokerage advice | Buy |
| Possible target price | ₹294 |
| Current price (Nov 19) | ₹221 |
| Market cap | ₹64,831 crore |
| Return on equity | 22.01% |
| YTD gain | 10% |
| September quarter profit | ₹1,195.63 crore (16.66% up) |
| Previous year profit (Q2) | ₹1,024.86 crore |
| September quarter income | ₹5,279.68 crore (22% up) |
| Previous year income (Q2) | ₹4,335.02 crore |
| Sector | Mining |
| Key product | Iron ore |
| Market role | 20% of India’s iron ore demand |
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