NMDC Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
NMDC Ltd's management has articulated a clear strategy to capitalize on India's expanding steel capacity, targeting a production increase to 110 million tonnes by FY30. This ambitious plan is underpinned by a substantial INR 400 billion capex program aimed at enhancing production capabilities and infrastructure. Despite facing global supply-side challenges, NMDC's cost-competitive position and domestic pricing dynamics provide a buffer against external volatility. Vista's financial outlook reflects moderate revenue growth, supported by the company's strategic diversification into coal and a focus on operational efficiency. However, margin pressures are anticipated due to ongoing cost inflation in the sector. The macro environment remains favorable, with strong indicators in manufacturing and power demand, although external liquidity challenges persist. Over the next 12-24 months, NMDC's key opportunities lie in its capacity expansion and product diversification, while execution risks and regulatory uncertainties remain critical watchpoints
Why We Like This Stock
- Strategic roadmap to double iron ore production capacity by FY30, enhancing revenue potential
- Diversification into coal expected to contribute significantly to revenue over the next three years
- Strong domestic pricing dynamics provide insulation from global market volatility
Things To Watch Out For
- Ongoing cost inflation may compress margins, impacting profitability
- Execution risks associated with large-scale capex projects and regulatory uncertainties
- Cautious investor sentiment reflected in recent trading patterns
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 21,308 | 23,906 | 32,071 | 28,478 | 32,272 |
| Profit Before Tax (Cr.) | 8,236 | 9,146 | 10,150 | 9,178 | 10,681 |
| PBT Margin | 38.7% | 38.3% | 3164.9% | 32.2% | 33.1% |
| Net Profit (Cr.) | 6,036 | 6,714 | 7,633 | 6,865 | 7,989 |
| Earnings Per Share | 6.9 | 7.6 | 8.7 | 7.8 | 9.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Bajaj Broking | ▲ Buy | 102 | 18-May-2026 |
| Choice Equity | ▲ Buy | 107 | 06-Aug-2026 |
| Citigroup | ▼ Sell | 85 | 02-Jun-2026 |
| Goldman Sachs | ▼ Reduce | 84 | 01-Jun-2026 |
| Kotak Securities | ► Add | 100 | 16-Jun-2026 |
| Mirae Asset | ► Add | 105 | 16-Jun-2026 |
| Motilal Oswal | ▲ Buy | 98 | 07-Aug-2026 |
| Prabhudas Liladhar | ► Hold | 97 | 02-Jun-2026 |
| UBS | ▼ Reduce | 80 | 15-Jun-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.