Why you should hold on to NMDC stock?
Based on the capital work-in-progress of about ₹18,500 crore for steel business, the book value of the NMDC Steel comes to almost ₹60 per share . The value of steel business improves with commissioning, and when the government finds a suitable partner for the steel business.
Is Nmdc a good stock?
ICICI Securities has recommended that NMDC stock with a target price of Rs 175. The company anticipates a +25 percent growth from the stock’s current market price of Rs 140. NMDC is one of the world’s lowest-cost iron ore producers.
Is NMDC debt free?
The image below, which you can click on for greater detail, shows that at March 2021 NMDC had debt of ₹19.9b, up from ₹5.66b in one year. But it also has ₹61.5b in cash to offset that, meaning it has ₹41.6b net cash.
Why is iron price increasing?
Raw material shortage The industry has been blaming iron ore shortage and the steep rise in prices on large scale inter-state export of ore. “Raw material (iron ore) production was impacted due to Covid and hence prices were up.
Will steel prices crash?
Will steel prices go down in 2021? Steel prices are extreme and should decline from late second quarter through the end of 2021. Locking now will mean over-paying over the second half of the year.
What is the book value of NMDC steel per share?
Based on the capital work-in-progress of about ₹18,500 crore for steel business, the book value of the NMDC Steel comes to almost ₹60 per share . Considering the P/B valuation of about 0.25-0.8 (based on P/B valuations of steel PSU, SAIL in the last decade) , the share price of NMDC Steel would be in the range of ₹16 to almost ₹50 per share.
What are the prospects of NMDC in the iron ore industry?
The company contributed to around 18 per cent to domestic production (excluding captive iron ore production). NMDC sells one of the best grade Iron ores globally. The prospects of iron ore industry is directly linked to the prospects of the steel sector.
What is the impact of premium on NMDC’s earnings?
Any decision by the committee that requires the company to pay a premium (as against nil earlier), effective retrospectively (from the date of renewal), will impact earnings of most of the mines of NMDC both in Chhattisgarh and Karnataka. That would likely be a key overhang on the operating profit of the company.
Is NMDC a large cap company?
NMDC Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 43,197.13 Crore) operating in Mining sector. NMDC Ltd. key Products/Revenue Segments include Iron Ore, Pellet, Diamonds, Sale of services, Power, Sponge Iron and Other Operating Revenue for the year ending 31-Mar-2019.