The share price of the large-cap company rose by 3.6 percent and hit its 52-week high of Rs 219.15 per share from its previous close of Rs 211.45 after the company raised the price of Iron ore.
In the National Mineral Development Corporation (NMDC) filing, the Company has increased the price of iron ore, the lump ore at Rs 5,600 per ton from Rs 5,400 and Fines at Rs 4,910 per ton from Rs 4,660.
According to the SteelMint forecast, India’s iron ore consumption is expected to rise to 255-260 million tonnes (mnt) by fiscal year 2024-25 (FY25). Iron ore prices were previously revised in November.
Looking at the company’s financials, their net revenue increased by 20 percent year over year, from Rs 3,328 crore in Q2FY23 to Rs 4,014 crore in Q2FY24. Their revenue fell by 25 percent sequentially from Rs 5,395 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 5 percent year over year, from Rs 972 crores in Q2FY23 to Rs 1,026 crores in Q2FY24. Their profit decreased by 37 percent on a quarterly basis from Rs 1,653 crore in Q1FY24 to the current levels.
The large-cap stock has a market capitalization of Rs 63,872 Crores, the share price of the company rose by 102 percent in the last six months and 72 percent in the last year. For instance, if an investor invested Rs 1 Lakh six months ago the current value of the investment would be 2.02 Lakhs.
NMDC Limited has a low price-to-earnings ratio of 11 compared to its peers, also it has a low debt-to-equity ratio of 0.02 with a return on equity ratio of 27, a return on capital employed of 36, and a net profit margin of 31 percent.
The company promoter owns 61 percent of the company, the general public owns 13 percent, foreign institutional investors own 8 percent, and domestic institutional investors own 18 percent.
NMDC Limited is an iron ore producer based in India. Copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands are just a few of the minerals being explored by the company.
Written by Sriram KV
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