- NMDC reported a net income of 19.7 billion rupees in the first quarter.
- Net income decreased slightly by 0.5% compared to the same period last year.
- The figure surpassed analysts’ estimates of 18.73 billion rupees.
- Revenue for the quarter was 66.3 billion rupees, marking a 23% increase year-on-year.
- This revenue exceeded expectations, which were estimated at 64.81 billion rupees.
- Total costs rose significantly to 42.9 billion rupees, a 38% increase compared to the previous year.
- Investment analysts’ recommendations for NMDC include 13 buys, 4 holds, and 6 sells.
Nmdc Ltd on Smartkarma
Analyst coverage on NMDC Ltd by Rahul Jain on Smartkarma presents a positive outlook for the company’s growth potential. In the first research report titled “NMDC Ltd (NSE: NMDC) – Volume-Led Growth Story with Re-Rating Potential,” Jain highlights NMDC’s steady profit growth over the past 3 years, driven by volume and margin expansion. The company has ambitious plans to increase production, targeting 55.4 MT in FY26 and 100 MT by 2030. Jain emphasizes that meeting these targets could lead to a potential re-rating of NMDC’s valuation, with expectations of improved performance compared to peers.
In another report named “NMDC: Proxy to Rising Steel Demand with a High Dividend Yield,” Jain discusses NMDC’s aim to double its output in the coming years amidst a backdrop of rising steel demand. Despite concerns over levies and pricing, NMDC shows strong near-term growth prospects, with plans to grow over 10% in FY26. Trading at a slight premium, the stock offers a 4-5% dividend yield and has a payout ratio of over 30%, providing downside support. Jain’s analysis indicates that NMDC is well-positioned to benefit from the growing domestic steel industry, aligning with the surging demand in the market.
A look at Nmdc Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Despite facing moderate momentum and growth scores, NMDC Ltd is positioned well for the long term according to Smartkarma Smart Scores. With strong scores in value, dividend, and resilience, the company showcases solid fundamentals and stability. NMDC Ltd’s focus on minerals exploration, including iron ore, copper, and various others, underscores its diverse portfolio, which contributes to its positive resilience score.
Furthermore, the company’s impressive dividend score reflects its commitment to rewarding shareholders. The above-average value score also suggests that NMDC Ltd may be undervalued, presenting a potential opportunity for investors. Overall, Smartkarma Smart Scores indicate a promising outlook for NMDC Ltd, supported by its solid fundamentals and strategic focus on mineral exploration.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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