ICICI Direct's research report on NMDC
NMDC reported an operationally steady set of Q3FY21 numbers. For the quarter, NMDC’s topline came in line with our estimates while EBITDA & PAT came in higher than our estimates. For Q3FY21, NMDC reported revenue of operations at Rs 4355 crore (up 45% YoY, 95% QoQ), broadly in line with our estimate of Rs 4540 crore. Iron ore sales volume was at 9.3 MT (up 10% YoY and 41% QoQ) (our estimate: 9.4 MT). EBITDA came in at Rs 2767 crore (up 74% YoY, 169% QoQ) (our estimate: Rs 2546 crore). EBITDA/tonne came in at Rs 2982/tonne, higher than our estimate of Rs 2700/tonne (Rs 1892/tonne in Q3FY20 and Rs 1560/tonne in Q2FY21). Ensuing PAT for the quarter was at Rs 2109 crore, higher than our estimate of Rs 1960 crore.
Outlook
We value the stock on an SoTP basis and arrive at a target price of Rs125 (earlier target price of Rs 100). We maintain out HOLD recommendation on the stock.
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