⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NMDC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | NMDC | Market Cap | 69,913 Cr. | Current Price | 79.5 ₹ | High / Low | 86.8 ₹ |
| Stock P/E | 10.1 | Book Value | 36.8 ₹ | Dividend Yield | 4.15 % | ROCE | 30.3 % |
| ROE | 24.4 % | Face Value | 1.00 ₹ | DMA 50 | 80.2 ₹ | DMA 200 | 76.6 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | -0.32 % | PAT Qtr | 1,738 Cr. | PAT Prev Qtr | 1,695 Cr. |
| RSI | 48.2 | MACD | -0.61 | Volume | 1,63,65,478 | Avg Vol 1Wk | 2,03,20,024 |
| Low price | 59.5 ₹ | High price | 86.8 ₹ | PEG Ratio | -0.94 | Debt to equity | 0.11 |
| 52w Index | 73.1 % | Qtr Profit Var | -10.6 % | EPS | 7.85 ₹ | Industry PE | 16.6 |
📊 Financials
- Revenue & Profitability: PAT rose slightly from ₹1,695 Cr. to ₹1,738 Cr., though quarterly variation shows -10.6% decline. EPS at ₹7.85 is decent.
- Margins & Returns: ROCE (30.3%) and ROE (24.4%) highlight strong efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.11 indicates very low leverage, ensuring financial stability.
- Cash Flow: Strong profitability and minimal debt support healthy cash flows.
💹 Valuation
- P/E Ratio: 10.1 vs Industry PE of 16.6 → Undervalued compared to peers.
- P/B Ratio: ~2.16 (Price ₹79.5 / Book Value ₹36.8) → Reasonable valuation.
- PEG Ratio: -0.94 → Negative, indicating weak growth prospects relative to valuation.
- Intrinsic Value: Current price appears undervalued, offering upside potential.
🏢 Business Model & Competitive Advantage
- NMDC is India’s largest iron ore producer, benefiting from scale and government backing.
- Competitive advantage lies in resource ownership, cost efficiency, and strong domestic demand.
- Dividend yield of 4.15% is attractive, providing strong shareholder returns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹72–76 range (close to DMA 200 at ₹76.6 and 52W low of ₹59.5).
- Long-Term Holding: Strong candidate for long-term investors due to undervaluation, robust ROE/ROCE, and attractive dividend yield.
✅ Positive
- Undervalued compared to industry peers (P/E 10.1 vs 16.6).
- Strong ROCE and ROE indicate efficient capital use.
- Debt-to-equity ratio of 0.11 ensures financial safety.
- Dividend yield of 4.15% is highly attractive.
⚠️ Limitation
- Negative PEG ratio (-0.94) highlights weak growth prospects.
- Quarterly profit decline (-10.6%) signals near-term weakness.
- EPS at ₹7.85 is modest relative to price.
📉 Company Negative News
- Quarterly profit decline compared to previous quarter.
- DII holdings reduced (-0.32%), showing cautious domestic sentiment.
- MACD at -0.61 indicates weak technical momentum.
📈 Company Positive News
- FII holdings increased (+0.44%), showing foreign investor confidence.
- Dividend yield remains strong at 4.15%.
- Stock trading near DMA 200 (₹76.6) shows technical support.
🏭 Industry
- Iron ore and mining industry benefits from infrastructure growth and steel demand.
- Industry PE at 16.6 suggests peers trade at higher valuations, making NMDC attractive.
🔎 Conclusion
- NMDC is fundamentally strong with high efficiency, low debt, and attractive dividend yield.
- However, weak growth prospects and profit volatility limit aggressive upside.
- Best strategy: Accumulate near ₹72–76 range for long-term holding, with focus on dividend income and stability.