AgenciesKotak Institutional Equities has buy call on NMDC with a target price of Rs 185.0. The current market price of NMDC is Rs 151.2.
NMDC, incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 44281.45 Crore) operating in Mining sector.
NMDC key Products/Revenue Segments include Iron Ore, Pellet, Sale of services, Diamonds, Power and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 6026.68 Crore, down -12.43% from last quarter Total Income of Rs 6882.44 Crore and up 35.10% from last year same quarter Total Income of Rs 4460.97 Crore. Company has reported net profit after tax of Rs 2048.40 Crore in latest quarter.
Investment Rationale
NMDC has crossed 40 million tons of production volumes during March 2022 and is likely to post a strong 23% YoY growth in volumes in FY2022E. The company has increased iron ore fines prices by 22% in the past two months and the brokerage sees further upside in the near term given high discount to import parity prices. The 3 mtpa steel plant demerger and commissioning in 1HFY23E should unlock value.
Promoter/FII Holdings
Promoters held 60.79 per cent stake in the company as of 31-Dec-2021, while FIIs owned 5.32 per cent, DIIs 21.85 per cent.
NMDC, incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 44281.45 Crore) operating in Mining sector.
NMDC key Products/Revenue Segments include Iron Ore, Pellet, Sale of services, Diamonds, Power and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 6026.68 Crore, down -12.43% from last quarter Total Income of Rs 6882.44 Crore and up 35.10% from last year same quarter Total Income of Rs 4460.97 Crore. Company has reported net profit after tax of Rs 2048.40 Crore in latest quarter.
Investment Rationale
NMDC has crossed 40 million tons of production volumes during March 2022 and is likely to post a strong 23% YoY growth in volumes in FY2022E. The company has increased iron ore fines prices by 22% in the past two months and the brokerage sees further upside in the near term given high discount to import parity prices. The 3 mtpa steel plant demerger and commissioning in 1HFY23E should unlock value.
Promoter/FII Holdings
Promoters held 60.79 per cent stake in the company as of 31-Dec-2021, while FIIs owned 5.32 per cent, DIIs 21.85 per cent.
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