The share price of Navratna company gained 6 percent to reach an intraday high of ₹ 130.50 apiece on the National Stock Exchange (NSE), following its business updates. At 03:12 PM, its shares were trading at ₹ 130.40 apiece.
NMDC Ltd. is engaged in the exploration and production of Iron ore along with diamonds, the production and sale of sponge iron and the generation and sale of wind power.
The company informed the exchanges that its production was up 37.5 percent to 3.41 MT in August 2023, against 2.48 MT in August 2022. On a cumulative basis, its production has reached 16.56 MT this year, compared to 13.45 MT in the previous year.
NMDC’s sales came in at 3.54 MT in August 2023, up 25.09 percent as compared to 2.83 MT in August 2022. On a cumulative basis, its sales have reached 17.43 MT this year, compared to 13.44 MT in the previous year.
With a market capitalization of ₹ 36,002 crores, NMDC is a mid-cap company. It has a high return on equity of 27.96 percent and an ideal debt-to-equity ratio of 0.02. Its shares were trading at a price-to-earnings ratio (P/E) of 6.20, which is lower than the industry P/E of 6.85, indicating that the stock might be undervalued compared to its peers.
The company’s promoters hold a 60.79 percent stake in it, followed by retail investors with 14.42 percent, domestic institutions with 11.10 percent, foreign institutions with 6.99 percent and mutual funds with 6.70 percent.
Written by Simran Bafna
