BSE:526371

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has NMDC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526371 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 526371's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

526371

0.4%

IN Metals and Mining

0.3%

IN Market


1 Year Return

-8.2%

526371

11.6%

IN Metals and Mining

7.0%

IN Market

Return vs Industry: 526371 underperformed the Indian Metals and Mining industry which returned 13.7% over the past year.

Return vs Market: 526371 underperformed the Indian Market which returned 8.9% over the past year.


Shareholder returns

526371IndustryMarket
7 Day0.3%0.4%0.3%
30 Day16.6%11.2%9.0%
90 Day-10.4%5.6%8.8%
1 Year-3.4%-8.2%18.8%11.6%8.9%7.0%
3 Year-13.6%-24.6%-18.6%-28.5%5.1%0.009%
5 Year39.9%4.0%105.5%67.5%51.8%40.4%

Long-Term Price Volatility Vs. Market

How volatile is NMDC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is NMDC undervalued compared to its fair value and its price relative to the market?

9.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 526371 (₹93.05) is trading above our estimate of fair value (₹39.5)

Significantly Below Fair Value: 526371 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 526371 is good value based on its PE Ratio (9.5x) compared to the IN Metals and Mining industry average (13.3x).

PE vs Market: 526371 is good value based on its PE Ratio (9.5x) compared to the Indian market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: 526371 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 526371's PB Ratio (1x) is in line with the IN Metals and Mining industry average.


Next Steps

Future Growth

How is NMDC forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 526371's forecast earnings growth (19.4% per year) is above the savings rate (7.2%).

Earnings vs Market: 526371's earnings (19.4% per year) are forecast to grow slower than the Indian market (24.2% per year).

High Growth Earnings: 526371's earnings are forecast to grow, but not significantly.

Revenue vs Market: 526371's revenue (23.9% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: 526371's revenue (23.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 526371's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NMDC performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526371 has high quality earnings.

Growing Profit Margin: 526371's current net profit margins (28.9%) are lower than last year (38.2%).


Past Earnings Growth Analysis

Earnings Trend: 526371's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: 526371's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 526371 had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Metals and Mining industry average (-22.4%).


Return on Equity

High ROE: 526371's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is NMDC's financial position?


Financial Position Analysis

Short Term Liabilities: 526371's short term assets (₹77.4B) exceed its short term liabilities (₹21.0B).

Long Term Liabilities: 526371's short term assets (₹77.4B) exceed its long term liabilities (₹13.8B).


Debt to Equity History and Analysis

Debt Level: 526371's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: 526371's debt to equity ratio has reduced from 2.5% to 1.8% over the past 5 years.

Debt Coverage: 526371's debt is well covered by operating cash flow (383.8%).

Interest Coverage: 526371 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is NMDC current dividend yield, its reliability and sustainability?

5.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 526371's dividend (5.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.53%).

High Dividend: 526371's dividend (5.69%) is in the top 25% of dividend payers in the Indian market (2.15%)


Stability and Growth of Payments

Stable Dividend: 526371's dividend payments have been volatile in the past 10 years.

Growing Dividend: 526371's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.1%), 526371's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Sumit Deb (57 yo)

0.25

Tenure

₹4,478,000

Compensation

Mr. Sumit Deb has been Chairman of the Board and Managing Director at NMDC Limited (formerly known as National Mineral Development Corporation) since August 01, 2020. Mr. Deb has been a Chairman of the Boa...


CEO Compensation Analysis

Compensation vs Market: Sumit's total compensation ($USD60.49K) is below average for companies of similar size in the Indian market ($USD768.94K).

Compensation vs Earnings: Insufficient data to compare Sumit's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sumit Deb
Chairman of the Board0.25yr₹4.48mno data
Amitava Mukherjee
Director of Finance & Director2yrs₹4.45mno data
Alok Mehta
Director of Commercial & Director1.42yrs₹5.53mno data
Pradip Satpathy
Production Director & Director5.92yrs₹8.25m0.000010%
₹ 28.5k
V. V. Sundaram
General Manager of Personnel & Administrationno datano datano data
A. S. Saradhi
Compliance Officer & Company Secretaryno datano datano data
V. Kumar
Chief General Manager of Slurry Pipeline Projectno datano datano data
R. Govindarajan
Chief General Managerno datano datano data
M. Reddy
Chief General Manager of Resource Planningno datano datano data
K.S.N. Murthy
Chief General Manager of Estateno datano datano data
Sanjay Panjiyar
Chief General Manager of Mechanical Services0.17yrno datano data
K. Kumar
Chief General Manager of Lawno datano datano data

1.4yrs

Average Tenure

Experienced Management: 526371's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sumit Deb
Chairman of the Board0.25yr₹4.48mno data
Amitava Mukherjee
Director of Finance & Director2yrs₹4.45mno data
Alok Mehta
Director of Commercial & Director1.42yrs₹5.53mno data
Pradip Satpathy
Production Director & Director5.92yrs₹8.25m0.000010%
₹ 28.5k
Rasika Chaube
Government Nominee Director2.33yrsno datano data
Kuppuramu Duraipandi
Non-Official Independent Director1.08yrs₹220.00kno data
Vijoy Singh
Government Nominee Director0.67yrno datano data

1.4yrs

Average Tenure

57yo

Average Age

Experienced Board: 526371's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

NMDC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NMDC Limited
  • Ticker: 526371
  • Exchange: BSE
  • Founded: 1958
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹284.905b
  • Shares outstanding: 3.06b
  • Website: https://www.nmdc.co.in

Number of Employees


Location

  • NMDC Limited
  • Khanij Bhavan
  • 10-3-311/A, Castle Hills
  • Hyderabad
  • Andhra Pradesh
  • 500028
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526371BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2001
NMDCNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2001

Biography

NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India. The company also explores for a range of minerals, such as copper, rock phosphate, lime stone, dolomite, gypsum, b...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 12:15
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.