Buy Nmdc: IIFL Securities's Target Price Rs 72
IIFL Securities issued a buy recommendation for NMDC shares on January 23, setting a target price of Rs 72. This recommendation comes as the current market price of NMDC stands at Rs 68.57. The analysis predicts a potential upside of approximately 5% for investors who follow this buy call.
About Nmdc:
NMDC Limited, formerly National Mineral Development Corporation Limited, is a public sector undertaking under the Ministry of Steel, Government of India. It is the largest producer of iron ore in India and one of the largest in the world. The company was incorporated in 1958 and is headquartered in Hyderabad, Telangana. NMDC is engaged in the exploration, mining, processing, and sale of iron ore and other minerals. It operates mines in Chhattisgarh, Madhya Pradesh, Karnataka, and Andhra Pradesh. The company also has a presence in the steel sector through its subsidiaries NMDC Steel Ltd and NMDC Malvika Steel Ltd.
52 Week Price Trend:
NMDC, a leading iron ore producer in India, has seen its share price fluctuate within a significant range over the past 52 weeks. The current market price (CMP) of Rs 68.57 places it closer to the 52-week low of Rs 59.7 compared to the high of Rs 95.45. This implies a potential upside movement of around 39% to reach the high mark. However, factors such as commodity price fluctuations, macroeconomic conditions, and company fundamentals will influence the trajectory of NMDC's share price in the future.
Stratzy's MOST Analysis:
NMDC's AA- rating from Stratzy's MOST framework indicates a medium level of fundamental risk. This rating suggests that NMDC exhibits strong management, a favorable outlook, and adheres to safety standards. The company is likely to show stable performance and has a positive trend. Overall, AA- implies that NMDC is a financially sound company with a strong foundation and moderate risk exposure.
Company's Fundamentals:
NMDC (NSE: NMDC) is a leading Indian iron ore producer. Its stock is currently trading at a PE ratio of 9.29, indicating that the market values its earnings at 9.29 times their face value. The PB ratio of 2.05 suggests that the market is willing to pay 2.05 times the company's book value for its shares. The dividend yield of 3.65% represents the annual dividend paid per share as a percentage of the current stock price, indicating a moderate level of income generation for investors.
Fundamental and Technical information provided in this blog were last updated on 23 Jan, 2025
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