NMDC Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
NMDC Ltd is currently navigating a pivotal phase characterized by aggressive capacity expansion and diversification into critical minerals, which management emphasizes as essential for long-term growth. The company's target to increase production to 100 MTPA by FY30, supported by significant infrastructure investments, positions it favorably within the expanding Indian steel market. Despite a forecasted contraction in revenue, improving margins indicate a focus on operational efficiency and cost optimization, aligning with Vista's outlook of moderate profitability enhancement. The stable domestic demand for iron ore, coupled with government initiatives to bolster the mining sector, further supports NMDC's competitive position. However, execution risks related to large-scale projects and potential regulatory changes remain critical watchpoints. Overall, while NMDC's strategic initiatives are expected to drive long-term growth, the immediate revenue outlook presents challenges that investors should monitor closely
Why We Like This Stock
- Aggressive capacity expansion to 100 MTPA by FY30 aligns with strong domestic steel demand
- Improving margins reflect effective cost optimization and operational efficiency
- Diversification into critical minerals positions NMDC favorably for future revenue streams
Things To Watch Out For
- Revenue is expected to contract over the forecast period, indicating short-term challenges
- Execution risks associated with large-scale infrastructure projects could impact growth timelines
- Potential regulatory changes may pose risks to operational stability and profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 21,308 | 23,906 | 32,071 | 28,505 | 30,129 |
| Profit Before Tax (Cr.) | 8,236 | 9,146 | 10,150 | 9,360 | 10,175 |
| PBT Margin | 38.7% | 38.3% | 31.6% | 32.8% | 33.8% |
| Net Profit (Cr.) | 6,036 | 6,714 | 7,633 | 7,000 | 7,610 |
| Earnings Per Share | 6.9 | 7.6 | 8.7 | 8.0 | 8.7 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ▲ Buy | 98 | 18-Aug-2026 |
| Nuvama | ▲ Buy | 97 | 18-Aug-2026 |
| Citigroup | ▼ Sell | 80 | 17-Aug-2026 |
| Goldman Sachs | ▼ Sell | 84 | 17-Aug-2026 |
| Choice Equity | ▲ Buy | 107 | 06-Aug-2026 |
| Kotak Securities | ► Add | 100 | 16-Jun-2026 |
| Mirae Asset | ► Add | 105 | 16-Jun-2026 |
| UBS | ▼ Reduce | 80 | 15-Jun-2026 |
| Prabhudas Liladhar | ► Hold | 97 | 02-Jun-2026 |
| Bajaj Broking | ▲ Buy | 102 | 18-May-2026 |
Company Overview
Show Company Profile
NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India and internationally. It operates through Iron Ore, and All Other Segments (Pellets, Other Minerals & Services). The company also explores for lithium, copper, rock phosphate, limestone, beach sand, coking and non-coking coal, magnesite, diamond, tungsten, nickel, gold, base metals, and rare earth metals. In addition, it produces and sells hot rolled coil and pellets; and generates and distributes solar and wind power. The company exports its products. NMDC Limited was incorporated in 1958 and is headquartered in Hyderabad, India.