Price hike, buyback, non-core biz exits to drive re-rating; upgrading to Buy NMDC's earnings outlook has improved significantly after the adoption of differential regional pricing, improved viability of exports and a sharp pick-up in pellets exports /coking coal prices/sponge iron prices in India. Dispatches and margins are already improving. We expect a price hike in October. Efficiencies in capital allocation too are improving due to its high dividend payout, large buyback and intention to exit non-core businesses (e.g. steel plant project), which will drive re-rating of the stock. We raise our EPS estimate by 50% to INR9 for FY17 and by 106% to INR8.3 for FY18. We also remove...