IIFL Securities's Stock Idea: Buy Nmdc with Target Rs 258

IIFL Securities issued a 'buy' recommendation for NMDC on December 10, with a target price of Rs 258. The current market price of NMDC is Rs 247.2. IIFL analysts believe that the company is poised for growth in the coming quarters due to strong demand for iron ore. Additionally, they note that NMDC's robust financial performance and strong balance sheet make it an attractive investment.

About Nmdc:

NMDC Limited (NMDC) is a state-owned mining company in India, headquartered in Hyderabad. It is the largest iron ore producer and exporter in the country. The company also produces and sells other minerals such as limestone, dolomite, and diamonds. NMDC has a market capitalization of around 1.5 lakh crore rupees (US$20 billion) and is listed on the National Stock Exchange of India (NSE). The company's main focus is on exploring, mining, processing, and marketing of iron ore and other minerals. It has a wide network of mines, beneficiation plants, and pellet plants across India. NMDC also has a number of subsidiaries and joint ventures in various sectors, including steel, power, and infrastructure.

52 Week Price Trend:

NMDC's current market price (CMP) of Rs. 247.2 falls between its 52-week high of Rs. 286.35 and its 52-week low of Rs. 179.75. This indicates that the stock has been trading within a relatively wide range, with potential for both upside and downside movement. Investors should carefully consider the company's fundamentals, market conditions, and their own risk tolerance before making any investment decisions.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, NMDC has received an AA- rating. This rating is based on the company's strong management, positive outlook, financial safety, and favorable trend. The rating indicates that NMDC has a low fundamental risk and is a good investment choice.

Company's Fundamentals:

NMDC, a prominent company listed on the National Stock Exchange (NSE), has a stock PE ratio of 11.15, indicating that its share price is 11.15 times its earnings per share. The PB ratio, at 2.47, suggests that its market value is 2.47 times its book value. Additionally, NMDC offers a dividend yield of 3.04%, making it an attractive option for investors seeking passive income. These metrics provide insights into NMDC's financial performance and valuation, aiding investors in making informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 10 Dec, 2024

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