NMDC Steel
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Recent management commentary and industry trends indicate that NMDC Steel is positioned to benefit from an expanding iron and steel market, driven by improving pricing power and rising demand for hot-rolled coil (HRC) products. The company's revenue growth is expected to accelerate beyond historical levels, supported by government initiatives aimed at enhancing production capacity and reducing emissions. This aligns with Vista's forecast of improving margins and profitability, despite a weak cash conversion on the balance sheet. The anticipated recovery in HRC prices, coupled with favorable macroeconomic conditions in India, including strong manufacturing activity and contained inflation, further supports the positive outlook. However, potential challenges such as geopolitical tensions and input cost volatility remain watchpoints. Over the next 12-24 months, NMDC Steel's ability to navigate these challenges while capitalizing on domestic demand growth will be crucial. Overall, the current sentiment reflects a cautious optimism, with a 'Buy on Dips' strategy being appropriate given the strong fundamentals and government support for the sector
Why We Like This Stock
Things To Watch Out For
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,049 | 8,503 | 13,642 | 15,767 | 22,280 |
| Profit Before Tax (Cr.) | -2,201 | -3,322 | 76 | 1,738 | 1,873 |
| PBT Margin | -72.2% | -39.1% | 55.7% | 11.0% | 8.4% |
| Net Profit (Cr.) | -2,201 | -3,322 | 59 | 1,338 | 1,442 |
| Earnings Per Share | -7.5 | -11.3 | 0.2 | 4.6 | 4.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
NMDC Steel Limited manufactures and sells steel products in India. It offers hot rolled coils, sheets, and plates of welded steel pipe for pipeline transportation systems; structural and silicon steel; pig iron; and LPG grades of LPG cylinders manufacturing. The company also provides tube and pipe grade, boiler and pressure vessel grade, commercial forming grades, cold rolling grade, and HSLA Grade. It serves infrastructure and construction; automotive and mobility; energy, oil, and gas; and engineering and fabrication industries. NMDC Steel Limited was incorporated in 2015 and is based in Hyderabad, India.