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Buy or Sell: NMDC Share Price Target 2024, 2025, 2030, 2035 Long-Term Prediction

HP Jinjholiya

24 August 2024

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Today, we are going to estimate the NMDC Share Price Target 2024 to 2050 Long Term Prediction. NMDC is listed on the NSE under the symbol “NMDC” and on the BSE with the code “526371”. let’s analyze the future of NMDC shares as well, including whether it’s a good time to buy or sell them today.

Additionally, we will also take into analysis NMDC Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.

Profile of NMDC

Keep an eye on NMDC’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in NMDC’s stock price.

NMDC Share Price Today

About NMDC Company

National Mineral Development Corporation (NMDC), India’s largest iron ore producer, has been a cornerstone of the country’s mining industry since its establishment in 1958. Specializing in the production and sale of iron ore, diamonds, sponge iron, and wind power, NMDC plays a pivotal role in India’s economic growth and infrastructure development.

Largest Iron Ore Producer in India: NMDC is the single largest producer of iron ore in the country. This makes it a vital player in India’s steel industry, as iron ore is a critical raw material for steel production.

Operations and Locations: The corporation operates highly mechanized iron ore mines in two Indian states – Chhattisgarh and Karnataka. Additionally, it has its registered office in Hyderabad, Telangana. This geographical spread signifies NMDC’s substantial presence in the Indian mining sector.

Low-Cost Production: NMDC is known for being one of the low-cost iron ore producers in the world. This efficiency in production not only benefits the corporation but also makes India’s iron ore and steel industries more competitive globally.

Diamond Mining: Apart from iron ore, NMDC also operates the only mechanized diamond mine in India, located in Panna, Madhya Pradesh. This diversification into diamond mining indicates NMDC’s versatility in the mining sector.

Production Capacity and Goals: Currently, NMDC produces over 40 million tonnes per annum (MTPA) of iron ore from its major iron-producing units. The corporation has set an ambitious target to increase its iron ore production capacity to 100 million tonnes by the financial year 2030 (FY30).

 Financial of NMDC

Conduct a SWOT analysis of NMDC Share based on its financials. We will break down the key elements of strengths, weaknesses, opportunities, and threats using the financial data.

Strengths–

Robust Revenue Growth: NMDC has shown significant growth in total revenue over the years, with a notable increase from ₹116,992.2 million in 2020 to ₹189,800 million in the trailing twelve months (TTM). This indicates a strong market presence and efficient operations.

High Gross Profit: The company’s gross profit has been consistently high, especially notable in the TTM and the year 2021, pointing towards effective cost management and pricing strategies.

Strong Operating Income: NMDC’s operating income shows resilience and efficiency in operations, with a high figure of ₹122,978.5 million in 2021.

Healthy Cash Flow: The operating cash flow of the company is robust, indicating good operational efficiency and financial health.

Weaknesses–

Fluctuating Net Income: While NMDC’s net income has been positive, it shows fluctuations, indicating possible variability in profitability or cost inconsistencies.

High Cost of Revenue: The cost of revenue, though managed well, is still a significant portion of the total revenue, suggesting room for cost optimization.

Inconsistent Investing and Financing Cash Flows: Negative figures in investing and financing cash flows in some years point towards potential issues in investment strategies or capital management.

Opportunities–

Market Expansion: With strong financial backing, NMDC has the opportunity to expand into new markets or diversify its business model.

Technological Advancements: Investment in technology can lead to better operational efficiency and lower costs.

Strategic Partnerships: Forming strategic alliances or partnerships can open new avenues for growth and market penetration.

Threats–

Market Competition: Intense competition in the industry can impact market share and pricing strategies.

Regulatory Changes: Changes in government policies or regulations can affect operational costs and business practices.

Economic Fluctuations: Economic downturns can lead to reduced demand and impact profitability.

An effective method for evaluating the NMDC share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on NMDC.

NMDC Share Price Target

The financial services firm Sharekhan published the latest research report on NMDC Share Price Target, assigning a ‘buy’ rating with a share price target of Rs. 245 from its current market price of Rs. 218.

Firstly, NMDC has reported a robust year-on-year growth of 18% and 24% in iron ore production and sales volume, respectively, for the first nine months of the financial year 2024 (9MFY24). The company successfully produced 31.8 million tonnes and sold 32 million tonnes of iron ore during this period. With this momentum, NMDC is on track to meet its FY24 production guidance of 47-49 million tonnes, a significant growth of 23-28% from the previous year.

Adding to this positive outlook, NMDC has implemented a substantial price hike for iron ore lump and fines – 20% and 26%, respectively, from September 2023 to January 2024. This increase is a reflection of the strength in international iron ore prices and is expected to significantly benefit the company’s earnings in the third quarter of FY24. The company’s earnings are anticipated to remain strong, supported by both volume growth and better realisations.

Analysts predict a 19% compound annual growth rate (CAGR) in profit after tax (PAT) for NMDC from FY23 to FY26E, underpinned by strong domestic steel demand and margin recovery. The recent demerger of the steel business is another strategic move that is expected to reduce the company’s capital intensity and lead to a re-rating of its financial robustness.

The company’s robust operational performance in Q3FY24 is particularly notable. Driven by strong demand from the steel sector, NMDC’s iron ore sales volume grew by 21% year-on-year to 11.4 million tonnes. With the company’s ambitious production targets for the upcoming years, it is expected to sustain this strong volume growth momentum.

Moreover, the company’s strategy of aligning its pricing with international market trends while maintaining a competitive edge in the domestic market is expected to further bolster its margins. The total price increase of Rs. 950 per tonne from September 2023 to January 2024 is anticipated to improve realisation and margins in the second half of FY24.

Financial experts have maintained a “Buy” rating on NMDC with a revised price target (PT) of Rs. 245. This valuation, at 5.2 times its FY26E EV/EBITDA, is considered reasonable given the company’s strong earnings growth outlook and a healthy dividend yield of approximately 4-5%. Additionally, NMDC’s high cash reserve of Rs. 14,000 crore, accounting for 22% of its current market capitalisation, offers further comfort to investors.

We will analyze the performance of the company’s shares in recent times and provide you with a well-researched NMDC Share Price Target 2024, 2025, 2030 to 2050 based on our Research knowledge and forecasting.

Peer Comparison of NMDC

How to Buy NMDC Share

• Click on the “Open an Account in Upstox“
• Fill in the required details
• Complete the verifying your identity
• Login to Your Account
• Search for NMDC
• Place an Order.

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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.

Disclaimer– These Share Price Targets for “NMDC Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold NMDC stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com