Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>Strong recovery: Q2 FY26 volumes up 23% YoY; margins steady at 38%, confirming operational strength.</li>
<li>Growth visibility: Expansion, slurry pipeline, and pellet plants drive FY26–27 capacity growth.</li>
<li>Deep-Value play: Trades at 10× P/E, 5× EV/EBITDA—half peer valuations, 5% dividend yield.</li>
</ul>


Strong recovery: Q2 FY26 volumes up 23% YoY; margins steady at 38%, confirming operational strength.
Growth visibility: Expansion, slurry pipeline, and pellet plants drive FY26–27 capacity growth.
Deep-Value play: Trades at 10× P/E, 5× EV/EBITDA—half peer valuations, 5% dividend yield.


NMDC Limited — Deep-Value Core of India’s Iron Ore Chain

<ul>
<li>Last 3 Years: NMDC’s PAT grew steadily from Rs3,774 Cr in FY23 to Rs6,693 Cr in FY25 (CAGR ~33%), driven by volume growth and margin expansion.</li>
<li>Guidance &amp; Plans: Targets 55.4 MT (24% growth) in FY26 and 100 MT by 2030, backed by infra, EC capacity, and pellet expansion.</li>
<li>Re-Rating Potential: Meeting volume, margin, and execution targets could trigger valuation re-rating from current below-peer multiples.</li>
</ul>


Last 3 Years: NMDC’s PAT grew steadily from Rs3,774 Cr in FY23 to Rs6,693 Cr in FY25 (CAGR ~33%), driven by volume growth and margin expansion.
Guidance &amp; Plans: Targets 55.4 MT (24% growth) in FY26 and 100 MT by 2030, backed by infra, EC capacity, and pellet expansion.
Re-Rating Potential: Meeting volume, margin, and execution targets could trigger valuation re-rating from current below-peer multiples.


NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential

<ul>
<li>NMDC has aggressive growth plans to double its output over the next 5-6 years. Near-term guidance is also strong with plans to grow at &gt;10% in FY26.</li>
<li>New levies, delays in execution and lacklustre pricing outlook remain a key concern. However, well-aligned to surging demand from steadily growing domestic steel industry.</li>
<li>Valuations: Trades at 9x TTM PE which is a slight premium to 5 yr average. Stock offers about 4-5% dividend yield and has payout ratio of &gt;30% provides downside support. </li>
</ul>


NMDC has aggressive growth plans to double its output over the next 5-6 years. Near-term guidance is also strong with plans to grow at &gt;10% in FY26.
New levies, delays in execution and lacklustre pricing outlook remain a key concern. However, well-aligned to surging demand from steadily growing domestic steel industry.
Valuations: Trades at 9x TTM PE which is a slight premium to 5 yr average. Stock offers about 4-5% dividend yield and has payout ratio of &gt;30% provides downside support. 


NMDC: Proxy to Rising Steel Demand with a High Dividend Yield.

Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

<ul>
<li>Investics Research will initiate coverage of the materials sector in April 2024, starting with iron ore and then gold, coal, and steel in subsequent months (in that order).</li>
<li>The areas of coverage on asset classes will encompass the underlying commodity and the associated equities. </li>
<li>Areas of differentiation would include in-depth coverage of all equities (small/mid and large cap) and actionable tactical ideas on the commodity.</li>
</ul>


Investics Research will initiate coverage of the materials sector in April 2024, starting with iron ore and then gold, coal, and steel in subsequent months (in that order).
The areas of coverage on asset classes will encompass the underlying commodity and the associated equities. 
Areas of differentiation would include in-depth coverage of all equities (small/mid and large cap) and actionable tactical ideas on the commodity.


Introduction: Initiation of Coverage in the Materials Sector

APAC IPOs & Placements, Aequitas Research

Akshat Shah

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Jain Resource Recycling / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/jain-resource-recycling" target="_blank" data-smartkarma-citation="entities:45058:1" rel="noopener">Jain Resource Recycling (2300699D IN)</a> is looking to raise about US$142m in its India IPO.</li>
<li>The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.</li>
<li>In this note, we take a quick look at the company’s past performance</li>
</ul>



Jain Resource Recycling (2300699D IN) is looking to raise about US$142m in its India IPO.
The company is primarily focused on manufacturing of non-ferrous metal products by recycling of non-ferrous metal scrap. It is also engaged in trading of non-ferrous metals and other commodities.
In this note, we take a quick look at the company’s past performance


Jain Resource Recycling Pre-IPO - Robust Growth but Inorganic Moves Lack Full Value

India

NMDC Limited explores for minerals. The Company is exploring for iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands.

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Nmdc Ltd (NMDC IN)

NMDC Limited — Deep-Value Core of India’s Iron Ore Chain

Strong operational performance and growth prospects drive a deep-value investment opportunity with steady margins and significant capacity...

Rahul Jain

NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential

NMDC's profit after tax has grown steadily over the last 3 years, with plans to increase production and expand capacity leading to potential re...

Rahul Jain

NMDC: Proxy to Rising Steel Demand with a High Dividend Yield.

NMDC aims to double output in 5-6 years, with strong near-term growth plans despite concerns over levies and pricing. Stock trades at slight...

Rahul Jain

Introduction: Initiation of Coverage in the Materials Sector

We provide readers with an introduction to our initiation on commodities. We also provide a rationale as to how our coverage will be comprehensive...

Sameer Taneja

Jain Resource Recycling Pre-IPO - Robust Growth but Inorganic Moves Lack Full Value

Jain Resource Recycling is looking to raise about US$142m in its India IPO. In this note, we take a quick look at the past performance.

Akshat Shah

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52-week Range

Market Cap (USDm)

P/E

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NMDC Limited — Deep-Value Core of India’s Iron Ore Chain

​Strong operational performance and growth prospects drive a deep-value investment opportunity with steady margins and significant capacity...

Rahul Jain

NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential

​NMDC's profit after tax has grown steadily over the last 3 years, with plans to increase production and expand capacity leading to potential re...

Rahul Jain

NMDC: Proxy to Rising Steel Demand with a High Dividend Yield.

​NMDC aims to double output in 5-6 years, with strong near-term growth plans despite concerns over levies and pricing. Stock trades at slight...

Rahul Jain

Introduction: Initiation of Coverage in the Materials Sector

We provide readers with an introduction to our initiation on commodities. We also provide a rationale as to how our coverage will be comprehensive...

Sameer Taneja

Jain Resource Recycling Pre-IPO - Robust Growth but Inorganic Moves Lack Full Value

Jain Resource Recycling is looking to raise about US$142m in its India IPO. In this note, we take a quick look at the past performance.

Akshat Shah

Strong operational performance and growth prospects drive a deep-value investment opportunity with steady margins and significant capacity...

NMDC's profit after tax has grown steadily over the last 3 years, with plans to increase production and expand capacity leading to potential re...

NMDC aims to double output in 5-6 years, with strong near-term growth plans despite concerns over levies and pricing. Stock trades at slight...