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526371: Future Mineral Expansion And Diversification Are Expected To Drive Upside Potential

India Urbanization And Renewable Energy Trends Will Fuel Mining Expansion

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526371
AnalystHighTarget
Not Invested
Published 21 Jun 2025

Update shared on 12 Dec 2025

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AnalystHighTarget's Fair Value
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1Y
0.01%
7D
1.9%

Analysts have modestly revised their price target for NMDC to reflect a balanced view of faster expected revenue growth and slightly compressed margins, with valuation supported by a marginally lower assumed future P/E multiple.

What's in the News

  • NMDC is actively scouting for acquisitions and partnerships across Africa, the Middle East, Latin America and Southeast Asia, targeting both operating and greenfield mineral assets beyond coal and iron ore, including limestone and critical minerals (Key Developments).
  • The Ministry of Steel has directed NMDC to secure a broader range of mineral blocks to support long term resource security and diversification of its commodity portfolio (Key Developments).
  • A board meeting scheduled for October 29, 2025 will review and approve the unaudited financial results for the quarter ended September 30, 2025, providing the next key data point on operating performance (Key Developments).
  • Another board meeting on November 14, 2025 will formally consider the decision not to declare any interim dividend on the company’s equity shares, indicating a conservative stance on near term cash payouts (Key Developments).

Valuation Changes

  • Fair Value Estimate has been maintained at ₹91.0 per share, indicating no change in the base intrinsic value assessment.
  • Discount Rate has risen slightly from 13.89 percent to 14.77 percent, reflecting a modestly higher perceived risk or required return.
  • Revenue Growth Assumption has increased significantly from 7.07 percent to 13.41 percent, implying a much stronger outlook for top line expansion.
  • Net Profit Margin Forecast has been reduced from 29.57 percent to 26.06 percent, incorporating expectations of some margin compression.
  • Future P/E Multiple has been trimmed from 12.88x to 11.91x, signaling a slightly more conservative valuation stance despite stronger growth assumptions.

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Disclaimer

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