NMDC Ltd.

NSE: NMDC | BSE: 526371 | ISIN: INE584A01023 |Industry: Mining
|Strong Performer, Under Radar
100.25 0.55 (0.55%)
NSE Nov 22, 2019 15:31
Volume: 2.5M
 
Durability score
85 /100
High Financial Strength
Valuation score
51.5 /100
Affordable Valuation
Momentum score
39.0 /100
Technically Neutral
Market Capitalizati...
30,695.5 Cr.
Market Leader
AVG Broker Target
109.7
9.4% upside
PE TTM Price to Ear...
6.2
Above industry median.
NMDC Ltd.    
14 Nov 2019
100.25
0.55%
buy
Hold: NMDC Ltd.
by ICICI Securities Limited
Target: 110 | Upside : 9.7%
ICICI Securities Limited
For Q2FY20, production volumes were at 5.0 MT, down 5% YoY, while sales volumes were down 13% YoY to 5.8 MT. As the Donimalai mines were shut, the production volume was adversely impacted compared to Q2FY19. Going forward, we model sales volume of 32 MT for both FY20E and FY21E. Restart of Donimalai mines awaits Karnataka response In September 2019, the Ministry of Mines amended the 'Mineral (Mining by Government Company) Rules, 2015 with regard to renewal of mining leases allocated to government companies. Earlier, the rule 3 (2) stated that if an...
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Number of FIIs/FPIs holding stock rose by 83 to 308 in Sep 2019 qtr.
NMDC Ltd.    
11 Nov 2019
100.25
0.55%
buy
Buy: NMDC Ltd.
by Motilal Oswal
Target: 126 | Upside : 25.7%
Motilal Oswal
EBITDA was down 39% QoQ to INR11.7b (11% below est. INR13.1b) on the back of lower export volumes at 0.52mt (v/s est. The QoQ drop in EBITDA was led by lower overall volumes. PBT declined 40% QoQ to INR11.9b while Adj. PAT declined 40% QoQ to INR8.2b (14% miss). Reported domestic realization declined INR25 QoQ to INR2,891/t on the back of price decline (INR200/t in Sep19). PAT was up 13% YoY to INR21.7b. Cash flow from operations post tax was down 53% YoY to INR5.2b on the back of WC deterioration. Global iron ore prices have retreated in recent months and we expect this to lead to lower export price realization. On the domestic front, we expect prices to decline in 4QFY20 due to (a) an oversupplied market, (b) higher availability prior to mine lease expiry, and (c) some tapering off in global Most packages of the steel plant are complete.
NMDC Ltd. has gained 25.23% in the last 3 Months
NMDC Ltd.    
11 Nov 2019
100.25
0.55%
buy
Sell: NMDC Ltd.
by Prabhudas Lilladhar
Target: 93 | Upside : 7.2%
Prabhudas Lilladhar
NMDC reported Q2FY20 EBITDA in line with our estimates; missed consensus estimates (CE) by 6%. On PAT level, it missed our estimates by 13% (CE:21%) due to status quo on tax rates as we believe that company is waiting for tax treatment on capitalization of its steel plant. Street is excited on expectation of fast clearance of NMDC's Donimalai iron ore mines with the...
NMDC Ltd. is trading below it's 30 day SMA of 104.3
NMDC Ltd.    
21 Aug 2019
100.25
0.55%
buy
Hold: NMDC Ltd.
by ICICI Securities Limited
Target: 95 | Target met
ICICI Securities Limited
Lower base effect aids July 2019 production/sales volume... NMDC reported production and sales volume numbers for July 2019. While prima facie, the growth numbers looked decent, it was mainly aided the by lower base effect (especially in Chhattisgarh). For July 2019, the production volume was at 2.0 MT while sales volume was at 2.4 MT....
NMDC Ltd. has gained 25.23% in the last 3 Months
NMDC Ltd.    
16 Aug 2019
100.25
0.55%
buy
Sell: NMDC Ltd.
by Prabhudas Lilladhar
Target: 107 | Target met
Prabhudas Lilladhar
NMDC reported Q1FY20 earnings in line with our estimates. The sharp rise in Change in Estimates | Target | Reco iron prices aftermath collapse of Vale's Brumadinho dam in Brazil helped NMDC to post strong earnings growth in last couple of quarters. However, we...
NMDC Ltd. is trading above it's 50 day SMA of 97.9
NMDC Ltd.    
16 Aug 2019
100.25
0.55%
buy
Hold: NMDC Ltd.
by ICICI Securities Limited
Target: 115 | Upside : 14.7%
ICICI Securities Limited
Recently, the Karnataka High Court ruled in favour of NMDC with regard to royalty issue in case of Donimalai mine. Earlier, Karnataka had levied 80% royalty on the Donimalai mine during the time of lease renewal. In this regard, NMDC had filed a writ petition in the high court against the royalty of 80% levied by the Karnataka government on average sales value of iron ore from the Donimalai mine. The writ petition has been allowed and the earlier condition to impose premium equivalent to 80% of average sale price of iron ore has been set aside. This favourable judgement augurs well for...
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NMDC Ltd. is trading above it's 50 day SMA of 97.9
NMDC Ltd.    
14 Aug 2019
100.25
0.55%
buy
Buy: NMDC Ltd.
by Motilal Oswal
Target: 128 | Upside : 27.7%
Motilal Oswal
1QFY20 adj. EBITDA of INR19.3b (-4% QoQ) was in line with our estimate of INR18.9b. The sequential decline in EBITDA was due to lower volumes, partly offset by higher realizations. Adj. PAT was down 6% QoQ at INR12.8b (in-line). Production was down 20% QoQ (+21% YoY) to 8.4mt, while sales declined 15% QoQ (+28% YoY) to 8.7mt (in-line). Domestic reported realization was up INR89 QoQ to INR2,916/t on the back of price hikes (INR200-250/t in May). In case of the Donimalai mine, a new lease agreement has to be signed with...
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NMDC Ltd. has gained 25.23% in the last 3 Months
NMDC Ltd.    
19 Jul 2019
100.25
0.55%
buy
Hold: NMDC Ltd.
by ICICI Securities Limited
Target: 125 | Upside : 24.7%
ICICI Securities Limited
Favourable high court ruling also augurs well Karnataka High Court has ruled in favour of NMDC with regard to royalty issue in case of Donimalai mine. Earlier, Karnataka had levied 80% royalty on the Donimalai mine during the time of lease renewal. In this regard, NMDC had filed a writ petition in the high court against the royalty of 80% levied by the Karnataka government on average sales value of iron ore from the Donimalai mine. The writ petition is allowed and the earlier condition to impose premium equivalent to 80% of average sale price of iron ore has...
NMDC Ltd. is trading above it's 50 day SMA of 97.9
NMDC Ltd.    
30 May 2019
100.25
0.55%
buy
Hold: NMDC Ltd.
by ICICI Securities Limited
Target: 115 | Target met
ICICI Securities Limited
Model sales volume of 31, 32 MT for FY20, 21, respectively For FY19, NMDC reported production volume of 32.36 MT, down 9.1% YoY, while it reported sales volume of 32.36 MT, down 10.8% YoY. The volume during FY19 was impacted on account of suspension of operations at NMDC's Donimalai iron ore mine. NMDC Donimalai mine has remained shut since November 2018, on account of royalty dispute with Karnataka government. The high court verdict is awaited for the same. The outcome of this verdict remain a key monitorable. Without Donimalai mine, NMDC...
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ICICI Securities Limited increased Hold price target of NMDC Ltd. to 110.0 on 14 Nov, 2019.
NMDC Ltd.    
29 May 2019
100.25
0.55%
buy
Buy: NMDC Ltd.
by Motilal Oswal
Target: 136 | Upside : 35.7%
Motilal Oswal
Operational decline as expected on lower realizations Donimalai mine lease resolution to drive re-rating; Maintain Buy 4QFY19 adj. EBITDA of INR20b (-12% QoQ) came in line with our estimate of INR19.6b. EBITDA is adjusted for (a) expected credit loss of INR742m, which is non-recurring and (b) INR1.65b of provision write-backs. The QoQ drop in...
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NMDC Ltd. has an average target of 109.67 from 3 brokers.