Navratna PSU Stock: The stock of iron ore producer company NMDC Ltd (NSE: NMDC) saw a decline of more than 2 percent in the trading session on Friday (February 16).
The company’s December quarter results have been good. Considering the volume and price, global brokerage firm has downgraded the rating of Navratna company NMDC. In the last 6 months, the wealth of investors in this share has more than doubled.
NMDC: Rating Downgrade Sell
Brokerage house has reduced the rating of NMDC from Buy to Sell. The target has been increased from 190 to 247.
At the end of the trading session on Friday, the share (NMDC Share Price) settled down by more than 1 percent. If we look at the performance of NMDC shares, it has given a 110 percent return to investors in the last 6 months.
That is, in 6 months the value of Rs 1 lakh increased to more than Rs 2 lakh. The 1-year return of the stock has also been 100 percent. Whereas in the last month, the share has increased by more than 15 percent.
The 52-week high of the stock is 252.65 and the low is 103.75. The market cap of the company on BSE stood at Rs 71,404 crore.
NMDC: What Is The Brokerage’s Opinion?
The company has kept the domestic market prices as per the export prices. The brokerage believes there is room for a small increase in volume after FY25.
From October 2023, NMDC has increased the prices by Rs 850 per tonne (19%). This is an important trigger for the company in the coming days.
Talking about NMDC’s third quarter results, the company’s profit jumped by 68 percent to Rs 1492 crore. There was also a strong growth of 78 percent in EBITDA. The company has also announced a bumper dividend of 575 percent for investors.
About NMDC Ltd Company
National Mineral Development Corporation (NMDC) Ltd is engaged in mining a wide range of minerals, including ferro ore, copper, sponge iron rock phosphate dolomite bentonite, limestone, gypsum diamonds, and tungsten.
It also mines in graphite and the beach Sands. It is a Navratna public sector business which is an element of the Ministry of Steel.
It is a producer of iron ore in three mines: the Bailadila deposit (Chhattisgarh State) and the Donimalai iron ore mines (Karnataka State).
It is the operator of and owns mechanized mines for iron located in Chhattisgarh and Karnataka and also the headquarters of the company at Hyderabad, Telangana.
It also runs one of the automated diamond mines located in India situated at Panna, Madhya Pradesh.
Fundamental Analysis of NMDC Ltd
| Market Cap | ₹ 71,609 Cr. |
| Current Price | ₹ 244 |
| 52-wk High | ₹ 253 |
| 52-wk Low | ₹ 104 |
| Stock P/E | 12.4 |
| Book Value | ₹ 83.6 |
| Dividend | 2.70 % |
| ROCE | 30.2 % |
| ROE | 23.0 % |
| Face Value | ₹ 1.00 |
| P/B Value | 2.92 |
| OPM | 35.6 % |
| EPS | ₹ 22.0 |
| Debt | ₹ 2,143 Cr. |
| Debt to Equity | 0.09 |
NMDC Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹255 | ₹273 |
| 2025 | ₹287 | ₹323 |
| 2026 | ₹343 | ₹376 |
| 2027 | ₹389 | ₹400 |
| 2028 | ₹412 | ₹432 |
| 2029 | ₹454 | ₹476 |
| 2030 | ₹500 | ₹587 |
NMDC Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 60.79% |
| Mar 2023 | 60.79% |
| June 2023 | 60.79% |
| Sept 2023 | 60.79% |
| Dec 2023 | 60.79% |
| FII Holding | |
| Dec 2022 | 6.60% |
| Mar 2023 | 7.33% |
| June 2023 | 6.99% |
| Sept 2023 | 8.32% |
| Dec 2023 | 9.91% |
| DII Holding | |
| Dec 2022 | 20.23% |
| Mar 2023 | 19.39% |
| June 2023 | 18.00% |
| Sept 2023 | 17.73% |
| Dec 2023 | 17.33% |
| Govt. Holding | |
| Dec 2022 | 0.00% |
| Mar 2023 | 0.00% |
| June 2023 | 0.00% |
| Sept 2023 | 0.00% |
| Dec 2023 | 0.00% |
| Public Holding | |
| Dec 2022 | 12.34% |
| Mar 2023 | 12.47% |
| June 2023 | 14.20% |
| Sept 2023 | 13.16% |
| Dec 2023 | 11.96% |
NMDC Ltd Share: Last 5 Years’ Financial Condition
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 12,153 Cr |
| 2020 | ₹ 11,699 Cr |
| 2021 | ₹ 15,370 Cr |
| 2022 | ₹ 25,965 Cr |
| 2023 | ₹ 20,670 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 4,617 Cr |
| 2020 | ₹ 3,573 Cr |
| 2021 | ₹ 6,277 Cr |
| 2022 | ₹ 9,429 Cr |
| 2023 | ₹ 6,433 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.01 |
| 2020 | 0.02 |
| 2021 | 0.07 |
| 2022 | 0.1 |
| 2023 | 0.02 |
Last 10 Years’ Profit Growth:
| 10 Years: | -3% |
| 5 Years: | 5% |
| 3 Years: | 9% |
| Current Year: | 11% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 19% |
| 5 Years: | 23% |
| 3 Years: | 28% |
| Last Year: | 23% |
Sales Growth Over 10 Years:
| 10 Years: | 5% |
| 5 Years: | 9% |
| 3 Years: | 15% |
| Current Year: | 11% |
Conclusion
This article is a complete guide about NMDC Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
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