NMDC Ltd. share price target

NMDC’s Q2FY23 EBITDA came below consensus estimates by 35%. Key highlights: 1) sharp decline in realisation through the quarter impacted earnings.

The process of commissioning of the steel plant has already started and hot metal production is likely to start in 1HFY23. We believe the demerger of the Nagarnar Iron and Steel Company (NISP) will be the key trigger for the stock. Thereafter, the government is likely to call for bids from potential suitor, which should likely culminate into sale of the government's holding in the steel plant to the new owner. The management has highlighted that the demerged financials would likely be presented to the Board in 1HFY23E....

During the quarter, NMDC reported iron ore sales volume of 9.8 MT, up 6% YoY & 9% QoQ (in line with our estimate of 9.9 MT). EBITDA/tonne came in at | 2654/tonne, higher than our estimate of | 2500/tonne (EBITDA/tonne of...

NMDC reported Q3FY22 EBITDA in line with our estimates while above consensus estimates (CE) by 3% at Rs26.1bn, down 16% QoQ/6% YoY. Global iron ore prices increased ~56% in last three months in wake of positive...