⚠ 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 - Swing Trade Analysis with AI Signals

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Rating: 4.2

Last Updated Time : 05 May 26, 03:59 pm

📊 Swing Trade Rating: 4.2

Stock Code NMDC Market Cap 78,361 Cr. Current Price 89.1 ₹ High / Low 92.8 ₹
Stock P/E 11.4 Book Value 36.8 ₹ Dividend Yield 3.70 % ROCE 30.3 %
ROE 24.4 % Face Value 1.00 ₹ DMA 50 83.9 ₹ DMA 200 78.6 ₹
Chg in FII Hold 0.12 % Chg in DII Hold -0.30 % PAT Qtr 1,738 Cr. PAT Prev Qtr 1,695 Cr.
RSI 60.0 MACD 2.59 Volume 2,03,04,048 Avg Vol 1Wk 2,60,52,202
Low price 61.6 ₹ High price 92.8 ₹ PEG Ratio -1.05 Debt to equity 0.11
52w Index 88.2 % Qtr Profit Var -10.6 % EPS 7.85 ₹ Industry PE 20.1

Analysis: NMDC shows strong fundamentals with low P/E (11.4 vs industry 20.1), high ROCE (30.3%) and ROE (24.4%). The stock is trading above both 50 DMA (83.9 ₹) and 200 DMA (78.6 ₹), indicating bullish momentum. RSI at 60 suggests healthy strength without being overbought. Dividend yield is attractive at 3.70%. However, quarterly profit variation is negative (-10.6%), and DII holdings have slightly reduced (-0.30%).

Optimal Entry Price: Around 84–86 ₹ (near 50 DMA support).

Exit Strategy: If already holding, consider exiting near 92–95 ₹ resistance zone or if RSI approaches 70.

✅ Positive

  • Low P/E compared to industry (11.4 vs 20.1)
  • Strong ROCE (30.3%) and ROE (24.4%)
  • Attractive dividend yield of 3.70%
  • Stock trading above DMA levels, showing momentum

⚠️ Limitation

  • Quarterly profit variation negative (-10.6%)
  • DII holdings decreased (-0.30%)
  • PEG ratio negative (-1.05), limiting growth visibility

📉 Company Negative News

  • Sequential profit decline (Qtr PAT 1,738 Cr. vs 1,695 Cr. but overall variation -10.6%)
  • Reduced domestic institutional interest

📈 Company Positive News

  • Strong profitability metrics (ROCE and ROE)
  • FII holdings increased (+0.12%)
  • Dividend yield supports investor confidence

🏭 Industry

  • Industry PE at 20.1, higher than NMDC’s 11.4 (stock undervalued vs peers)
  • Steel and mining sector outlook remains positive with demand recovery

🔎 Conclusion

NMDC is a strong swing trade candidate with solid fundamentals and attractive valuation. Entry is favorable around 84–86 ₹, while profit booking is advised near 92–95 ₹. Momentum indicators suggest further upside potential, but traders should monitor quarterly earnings and institutional flows closely.

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