India’s largest iron ore producer and mining giant, known for its extensive mineral exploration and production capabilities, has unveiled ambitious expansion plans. The state-owned enterprise is preparing for a massive investment to boost its production capacity to 100 MTPA by 2030, signalling a major transformation in the country’s mining sector.
Share Price Movement
The share price of NMDC Limited went up 3.1 percent to Rs. 65.88 per share on Wednesday, an increase from its previous close of Rs. 63.89 per share. The market capitalisation now stands at approximately Rs. 57,516 crore as of January 29, 2025.
Recent Update
State-owned steel PSU NMDC Limited is set to invest Rs 70,000 crore over the next five years to expand its production capacity to 100 million tonnes per annum (MTPA), the company’s Chairman and Managing Director, Amitava Mukherjee, announced on Tuesday
Management Commentary
“This is not business as usual; it is a priority effort and a once-in-a-lifetime opportunity towards building a global mining powerhouse,” Amitava Mukherjee said.
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Financial Highlights
In Q2 FY25, revenue grew 22.5% YoY to Rs. 4,919 crore but declined 9.1% QoQ from Rs. 5,414 crore. Profit rose 17.4% YoY to Rs. 1,205 crore but dropped 38.8% QoQ from Rs. 1,969 crore, indicating strong annual growth but a sequential slowdown.
Competitors
Major competitors of NMDC include Coal India Ltd., MOIL Ltd., KIOCL Ltd., Vedanta Ltd., Lloyds Metals & Energy Ltd., Ashapura Minechem Ltd., and Sandur Manganese & Iron Ores Ltd.
NMDC has a P/E of 8.89, which is lower than the industry P/E of 9.17.
Market Outlook
India’s energy and infrastructure sectors are driving strong demand for coal, steel, and zinc. The government aims for 300 MTPA crude steel capacity by 2030-31, with speciality steel production boosting self-reliance. Policy reforms support mining, while cost advantages enhance global competitiveness. Investments under the PLI scheme will expand capacity and create jobs. India ranks among the top global producers of steel, aluminium, and iron ore, making it a key player in the global metals and minerals market.
Written By Fazal Ul Vahab C H
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