On Friday, the share price of the company rose by 5% to its intraday high of 237.35 per share from its previous close of 225.35 after the company gives its business update for the January month.
According to the exchange filing, NMDC Limited provided a business update on the production and sales of iron ore (provisional) for the month of January 2024.
In the Chhattisgarh and Karnataka sectors, total production increased by 8% monthly, while total sales increased by 18.7% monthly. Their cumulative production increased by 16%, while their cumulative sales increased by 23%.
NMDC Ltd has invested ₹886.72 crores in subsidiaries and joint ventures in India and abroad. In Q2 company gave their bestever performance which shown 25% upside in the production and 14% upside in their sales according to the investor presentation.
In september quarter, the net revenue of the company increased by 20% YoY from ₹3,328 crores to ₹4,014 crores, in the QoQ basis the net revenue decreased by 25% from ₹5,395 crores to its current level.
The net profit of the company rose by 5.5% YoY from ₹972 crores to ₹1,026 crores and in the sequential basis the company fell by 37% from ₹1,653 to its current level.
The company has a low debt to equity ratio of 0.09, a return on equity of 23%, a return on capital employed of 30% and a net profit margin of 26%.
With the market capitalization of 69,300 crores it is a Large-cap company, the share price of the company rose by 109% in the last six months, if an investor invested Rs 1 lakh the six month ago the current value of the investment would be Rs 2.09 lakhs.
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. The company’s segments include iron ore, pellets, other minerals, and services.
Written by Sriram KV
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