NMDC Ltd’s fundamental analysis highlights key financial metrics: Market Cap of ₹64,432.30 crore, PE Ratio of 10.2, Debt to Equity of 1.87 and Return on Equity of 27.55%. These indicators reflect the company’s financial health and market valuation.
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NMDC Ltd Overview
NMDC Ltd is an Indian producer of iron ore and is involved in the exploration of various minerals. It operates in the mining and mineral exploration sector, with a primary focus on iron ore production.
The company is listed on both the NSE and BSE. With a market capitalization of ₹64,432.30 crore, it’s currently 30.24% away from its 52-week high and 90.60% away from its 52-week low.
NMDC Ltd Financial Results
NMDC Ltd reported a steady performance in FY 24 with sales of ₹21,308 crores, showing a strong financial position. The company’s profit margins and reserves remained robust, with operating profits increasing over the past year, reflecting consistent growth across its key financial indicators.
1. Revenue Trend: Sales for FY 24 stood at ₹21,308 crores, an increase from ₹17,667 crores in FY 23, demonstrating consistent revenue growth.
2. Equity and Liabilities: Equity capital remained steady at ₹293 crores for FY 24. Reserves grew to ₹25,380 crores compared to ₹22,328 crores in FY 23. Total liabilities reached ₹35,661 crores in FY 24.
3. Profitability: NMDC achieved an operating profit of ₹7,293 crores in FY 24, up from ₹6,053 crores in FY 23, with an operating margin of 32.16%.
4. Earnings per Share (EPS): The EPS for FY 24 stood at ₹19, unchanged from FY 23, reflecting consistent shareholder value.
5. Return on Net Worth (RoNW): NMDC’s return on net worth is maintained, as reflected by its steady profitability and increase in reserves.
6. Financial Position: NMDC’s total assets reached ₹35,661 crores in FY 24, up from ₹28,248 crores in FY 23, reflecting the company’s expanding asset base and financial strength.
NMDC Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 21,308 | 17,667 | 25,882 |
| Expenses | 14,015 | 11,614 | 13,299 |
| Operating Profit | 7,293 | 6,053 | 12,583 |
| OPM % | 32.16 | 32.83 | 47.3 |
| Other Income | 1,089 | 2,005 | 718.52 |
| EBITDA | 8,664 | 6,821 | 13,301 |
| Interest | 78 | 75 | 39 |
| Depreciation | 351 | 336 | 288 |
| Profit Before Tax | 7,953 | 7,647 | 12,974 |
| Tax % | 29.93 | 27.57 | 27.61 |
| Net Profit | 5,571 | 5,603 | 9,379 |
| EPS | 19 | 19 | 32 |
| Dividend Payout % | 38.12 | 34.54 | 46.05 |
* Consolidated Figures in Rs. Crores
NMDC Limited Company Metrics
NMDC Ltd company metrics include a market capitalization of ₹64,432.30 crore, a book value per share of ₹87.5 and a face value of ₹1. With a debt-to-equity ratio of 1.87, a return on equity of 27.55% and a 3.30% dividend yield, these figures underscore the company’s financial position and investment profile.
Market Capitalization: Market Capitalization represents the total market value of NMDC’s outstanding shares, amounting to ₹64,432.30 crore.
Book Value: The book value per share of NMDC is ₹87.5, indicating the value of the company’s net assets divided by its outstanding shares.
Face Value: The face value of NMDC’s shares is ₹1, which is the original cost of the shares as stated on the certificate.
Asset Turnover Ratio: The asset turnover ratio of 0.85 measures how efficiently NMDC uses its assets to generate revenue.
Total Debt: The total debt of ₹422.66 crore represents the sum of all short-term and long-term debt obligations of NMDC.
Return on Equity (ROE): The ROE of 27.55% measures NMDC’s profitability in generating income from its equity investments.
EBITDA (Q): The quarterly EBITDA of ₹2,704.56 crore represents NMDC’s earnings before interest, taxes, depreciation, and amortization.
Dividend Yield: The dividend yield of 3.30% shows the annual dividend payment as a percentage of NMDC’s current share price, indicating the return on investment from dividends alone.
NMDC Ltd Stock Performance
NMDC Ltd has delivered strong returns over different periods, with a 1-year return of 42.5%, a 3-year return of 23% and a 5-year return of 25.7%. These figures highlight the company’s consistent performance and ability to generate significant returns for its investors.
| Period | Return on Investment (%) |
| 1 Year | 42.5 |
| 3 Years | 23 |
| 5 Years | 25.7 |
For example, if you had invested ₹1,000 in NMDC Ltd:
1 year ago, your investment would be worth ₹1,425.
3 years ago, it would have grown to ₹1,230.
5 years ago, your investment would have increased to ₹1,257.
NMDC Peer Comparison
NMDC Ltd stands strong among its peers with a current market price of ₹212.12, a P/E of 10.2, and a 1-year return of 42.51%. It compares well to companies like Coal India with a higher ROE of 52.04% and Vedanta with an impressive dividend yield of 7.81%.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Coal India | 487.1 | 300186.5 | 8.22 | 52.04 | 59.34 | 73.19 | 63.59 | 5.24 |
| Vedanta | 448.3 | 175302.7 | 27.92 | 10.49 | 14 | 89.56 | 20.91 | 7.81 |
| NMDC | 212.12 | 62164.01 | 10.2 | 23.93 | 20.11 | 42.51 | 30.91 | 3.42 |
| Lloyds Metals | 816.4 | 42677.6 | 30.54 | 56.64 | 27.66 | 45.34 | 78.27 | 0.12 |
| KIOCL | 384.3 | 23355.87 | -4.32 | -1.25 | 22.16 | -2.18 | 0 | |
| G M D C | 371.35 | 11808.93 | 20.27 | 10.37 | 18.32 | 27.37 | 13.78 | 2.57 |
| Sandur Manganese | 491.7 | 7967.26 | 23.12 | 11.35 | 21.26 | 84.17 | 15.16 | 0.2 |
NMDC Shareholding Pattern
NMDC Ltd’s shareholding pattern as of June 2024 shows Promoters holding 60.79%, remaining unchanged from previous quarters. FII increased slightly to 12.76%, while DII also rose to 14.31%. Retail and others held 12.12%, down from 12.51% in March 2024.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 60.79 | 60.79 | 60.79 |
| FII | 12.76 | 12.60 | 9.91 |
| DII | 14.31 | 14.09 | 17.33 |
| Retail & others | 12.12 | 12.51 | 11.96 |
NMDC Ltd History
NMDC Limited is a prominent Indian iron ore producer, engaged in the exploration and production of various minerals. The company’s primary focus is on iron ore, with significant operations in Chhattisgarh and Karnataka, producing over 40 million tons per annum (MTPA) of iron ore.
In addition to iron ore, NMDC is involved in exploring and mining other minerals such as copper, rock phosphate, limestone, magnesite, diamond and tungsten. The company operates a mechanized diamond mine in Panna, Madhya Pradesh, diversifying its mineral portfolio beyond iron ore.
NMDC has several subsidiaries, including Legacy Iron Ore Limited, J & K Mineral Development Corporation Limited and NMDC Power Limited, which expand its operational reach and capabilities. These subsidiaries contribute to NMDC’s overall growth strategy and market presence in the mining sector.
How To Invest In NMDC Share?
To invest in NMDC shares, open a demat account with Alice Blue. Research the company’s fundamentals, financial performance and position in the mining sector. Analyze historical stock data and compare it with industry peers.
Determine your investment strategy based on your financial goals and risk tolerance. Consider factors such as iron ore demand, global commodity prices and the company’s exploration projects. Decide on the investment amount and timing.
Place your order through the broker’s platform. Regularly monitor your investment, staying updated on company news, quarterly results and mining industry trends. Consider seeking advice from a financial advisor for personalized guidance and to ensure your investment aligns with your overall portfolio strategy.
NMDC Fundamental Analysis – FAQs
NMDC Ltd’s fundamental analysis reveals a Market Cap of ₹64,432.30 crore, PE Ratio of 10.2, Debt to Equity of 1.87 and Return on Equity of 27.55%. These metrics provide insights into the company’s financial health, profitability and market valuation.
NMDC’s market capitalization is ₹64,432.30 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current stock price by the number of outstanding shares.
NMDC Limited is an Indian state-owned mineral producer, primarily engaged in iron ore mining. It also explores and produces other minerals like copper, diamond and limestone. The company operates major iron ore mines in Chhattisgarh and Karnataka.
NMDC is a public sector undertaking, primarily owned by the Government of India. While the government holds a majority stake, it is also a publicly listed company with ownership distributed among various institutional and individual shareholders.
The main shareholders of NMDC Ltd include the Government of India as the promoter, along with institutional investors and public shareholders. For the most current and accurate information on major shareholders, refer to the company’s latest shareholding pattern disclosure.
NMDC operates in the mining and mineral exploration industry. The company primarily focuses on iron ore production but is also involved in exploring and mining other minerals such as copper, diamond and limestone, serving both domestic and international markets.
To invest in NMDC shares, open a demat account with Alice Blue. Research the company’s performance and mining sector trends. Decide on your investment strategy. Place your order through the broker’s platform. Regularly monitor your investment, staying informed about market conditions. Consider seeking financial advice for personalized guidance.
Determining if NMDC is overvalued or undervalued requires analyzing its financials, growth prospects, industry position, and peer comparison. Consider factors like PE ratio, future earnings potential and mining sector trends. Consult recent analyst reports for expert opinions on the company’s valuation.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
