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HomeSHARE MARKETSelling Advice In This Share, Brokerage Reduced Target By 15%; Know Complete...

Selling Advice In This Share, Brokerage Reduced Target By 15%; Know Complete Details

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Navratna PSU Stock: NMDC Ltd (NSE: NMDC), the country’s largest iron ore company, has announced a price cut. The price of fine and lump iron ore has been reduced by Rs 250 each per tonne.

The new rate has become effective from March 21. This share opened today at the level of Rs 206 (NMDC Share Price). Global brokerage firm is bearish on this stock and has advised to sell. The price of the target has been reduced by an additional 15%.

Iron Ore Price Cut By Up To ₹250

According to the information available on the BSE website, after the cut, the price of lump iron ore has become Rs 5800 per tonne. The price of fine iron has increased to Rs 5060 per ton. 

The new rate is applicable from March 21. Earlier on January 24, the company had revised the price. 

At that time the rate of lump iron was fixed at Rs 6000 and the rate of fine iron ore was fixed at Rs 5310 per ton. Iron ore is used in making steel. 

Any price change has a direct impact on the industry. Steel is mainly used in infra, construction, auto, and railways. Hyderabad-based NMDC contributes 20 percent to India’s total iron ore production.

Why Sell Advice In NMDC Shares?

Global brokerage firm has advised selling in NMDC shares and reduced the target price by 17 percent from Rs 215 to Rs 180. On March 21, this share closed at the level of Rs 208. 

The brokerage said that the price of iron ore in the global market has come down from 130 to 105 per tonne. NMDC’s iron ore is priced at a 25% premium. In such a situation, reduction is certain. 

The brokerage said that if the company cuts the price of fine iron ore by Rs 100 per tonne, its EBITDA will reduce by 4%. Apart from this, there is an impact of Rs 8 on the fair value of the share.

NMDC Share Price History

In the last few quarters, NMDC shares gave bumper returns to investors. However, the correction has been seen in the last month. On February 15, 2024, this share made a high of Rs 253. 

After that, it has corrected to 16-18%. Based on its closing price, this investment has returned 85 percent within a year. This stock made a low of Rs 190 on March 15 in the year 2024. It had made last year’s low of Rs 104 on May 19, 2023.

About NMDC Ltd Company 

National Mineral Development Corporation (NMDC) Ltd is engaged in mining a wide range of minerals, including ferro ore, copper, sponge iron rock phosphate dolomite bentonite, limestone, gypsum diamonds, and tungsten.

It also mines in graphite and the beach Sands. It is a Navratna public sector business which is an element of the Ministry of Steel.

It is a producer of iron ore in three mines: the Bailadila deposit (Chhattisgarh State) and the Donimalai iron ore mines (Karnataka State).

It is the operator of and owns mechanized mines for iron located in Chhattisgarh and Karnataka and also the headquarters of the company at Hyderabad, Telangana.

It also runs one of the automated diamond mines located in India situated at Panna, Madhya Pradesh. 

Fundamental Analysis of NMDC Ltd

Market Cap₹ 60,898 Cr.
Current Price₹ 202.80
52-wk High₹ 253 
52-wk Low₹ 104
Stock P/E10.6
Book Value₹ 83.6
Dividend3.18 %
ROCE30.2 %
ROE23.0 %
Face Value₹ 1.00
P/B Value2.49
OPM35.6 %
EPS₹ 22.0
Debt₹ 2,143 Cr.
Debt to Equity0.09

NMDC Ltd Share Price Target 2024 To 2030 

Year1st Target2nd Target
2024₹ 255₹ 273
2025₹ 287₹ 323
2026₹ 343₹ 376
2027₹ 389₹ 400
2028₹ 412₹ 432
2029₹ 454₹ 476
2030₹ 500₹ 587
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NMDC Ltd Shareholding Pattern

Promoters Holding
Dec 202260.79%
Mar 202360.79%
June 202360.79%
Sept 202360.79%
Dec 202360.79%
FII Holding
Dec 20226.60%
Mar 20237.33%
June 20236.99%
Sept 20238.32%
Dec 20239.91%
DII Holding
Dec 202220.23%
Mar 202319.39
June 202318.00%
Sept 202317.73%
Dec 202317.33%
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Govt. Holding
Dec 20220.00%
Mar 20230.00%
June 20230.00%
Sept 20230.00%
Dec 20230.00%
Public Holding
Dec 202212.34%
Mar 202312.47%
June 202314.20%
Sept 202313.16%
Dec 202311.96%

NMDC Ltd Share: Last 5 Years’ Financial Condition

To better understand how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹ 12,153 Cr
2020₹ 11,699 Cr
2021₹ 15,370 Cr
2022₹ 25,965 Cr
2023₹ 20,670 Cr
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Last 5 Years’ Net Profit:

2019₹ 4,617 Cr
2020₹ 3,573 Cr
2021₹ 6,277 Cr
2022₹ 9,429 Cr
2023₹ 6,433 Cr

Last 5 Years’ Debt-To-Equity Ratio:

20190.01
20200.02
20210.07
20220.1
20230.02

Last 10 Years’ Profit Growth:

10 Years:-3%
5 Years:5%
3 Years:9%
Current Year:11%

Last 10 years’ Return on Equity (ROE):

10 Years:19%
5 Years:23%
3 Years:28%
Last Year:23%

Sales Growth Over 10 Years:

10 Years:5%
5 Years:9%
3 Years:15%
Current Year:11%

Conclusion

This article is a complete guide about NMDC Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses. 

Also, We have discussed the share’s prospects and growth potential in detail.

This information will help you in your further investment. 

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