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NMDC

NMDCNSEI:NMDC Stock Report

Market Cap

₹412.2b

7D

-10.8%

1Y

68.6%

Updated

25 Oct, 2021

Data

Company Financials +
NMDC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

NMDC Overview

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

NMDC Competitors

JSW Steel

BSE:500228

₹1.6t

Tata Steel

BSE:500470

₹1.6t

Steel Authority of India

BSE:500113

₹477.3b

KIOCL

NSEI:KIOCL

₹157.0b

Price History & Performance

Summary of all time highs, changes and price drops for NMDC
Historical stock prices
Current Share Price₹140.50
52 Week High₹79.40
52 Week Low₹213.20
Beta1.14
1 Month Change0.36%
3 Month Change-19.51%
1 Year Change68.57%
3 Year Change28.08%
5 Year Change5.68%
Change since IPO-98.73%

Recent News & Updates

Aug 30
Are Investors Undervaluing NMDC Limited (NSE:NMDC) By 49%?

Are Investors Undervaluing NMDC Limited (NSE:NMDC) By 49%?

Today we will run through one way of estimating the intrinsic value of NMDC Limited ( NSE:NMDC ) by taking the expected...

Aug 11
Here's Why I Think NMDC (NSE:NMDC) Might Deserve Your Attention Today

Here's Why I Think NMDC (NSE:NMDC) Might Deserve Your Attention Today

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Jul 12
NMDC (NSE:NMDC) Could Easily Take On More Debt

NMDC (NSE:NMDC) Could Easily Take On More Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

NMDCIN Metals and MiningIN Market
7D-10.8%-10.4%-4.6%
1Y68.6%129.3%61.7%

Return vs Industry: NMDC underperformed the Indian Metals and Mining industry which returned 123.7% over the past year.

Return vs Market: NMDC exceeded the Indian Market which returned 61% over the past year.

Price Volatility

Is NMDC's price volatile compared to industry and market?
NMDC volatility
NMDC Beta1.14
Industry Beta1.22
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
19585,569Sumit Debhttps://www.nmdc.co.in

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, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands, etc., as well as coal and gold ores. In addition, it produces and sells sponge iron; and generates and sells wind power.

NMDC Fundamentals Summary

How do NMDC's earnings and revenue compare to its market cap?
NMDC fundamental statistics
Market Cap₹412.19b
Earnings (TTM)₹89.32b
Revenue (TTM)₹199.45b

4.6x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NMDC income statement (TTM)
Revenue₹199.45b
Cost of Revenue₹42.64b
Gross Profit₹156.81b
Expenses₹67.50b
Earnings₹89.32b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)30.48
Gross Margin78.62%
Net Profit Margin44.78%
Debt/Equity Ratio6.7%

How did NMDC perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

26%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NMDC (₹140.5) is trading below our estimate of fair value (₹334.04)

Significantly Below Fair Value: NMDC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NMDC is good value based on its PE Ratio (4.6x) compared to the Indian Metals and Mining industry average (12x).

PE vs Market: NMDC is good value based on its PE Ratio (4.6x) compared to the Indian market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: NMDC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NMDC is good value based on its PB Ratio (1.4x) compared to the IN Metals and Mining industry average (1.7x).


Future Growth

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

-14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NMDC's earnings are forecast to decline over the next 3 years (-14.7% per year).

Earnings vs Market: NMDC's earnings are forecast to decline over the next 3 years (-14.7% per year).

High Growth Earnings: NMDC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NMDC's revenue (6.6% per year) is forecast to grow slower than the Indian market (13.1% per year).

High Growth Revenue: NMDC's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has NMDC performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NMDC has high quality earnings.

Growing Profit Margin: NMDC's current net profit margins (44.8%) are higher than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: NMDC's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: NMDC's earnings growth over the past year (204.4%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: NMDC earnings growth over the past year (204.4%) exceeded the Metals and Mining industry 129.5%.


Return on Equity

High ROE: NMDC's Return on Equity (29.9%) is considered high.


Financial Health

How is NMDC's financial position?


Financial Position Analysis

Short Term Liabilities: NMDC's short term assets (₹106.0B) exceed its short term liabilities (₹55.4B).

Long Term Liabilities: NMDC's short term assets (₹106.0B) exceed its long term liabilities (₹15.0B).


Debt to Equity History and Analysis

Debt Level: NMDC's debt to equity ratio (6.7%) is considered satisfactory.

Reducing Debt: NMDC's debt to equity ratio has increased from 4.1% to 6.7% over the past 5 years.

Debt Coverage: NMDC's debt is well covered by operating cash flow (363.5%).

Interest Coverage: NMDC's interest payments on its debt are well covered by EBIT (1142.6x coverage).


Balance Sheet


Dividend

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

5.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NMDC's dividend (5.52%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: NMDC's dividend (5.52%) is in the top 25% of dividend payers in the Indian market (1.41%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), NMDC's dividend payments are well 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?

1.0yrs

Average management tenure


CEO

Sumit Deb (58 yo)

1.17yrs

Tenure

₹6,403,000

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 ($USD85.33K) is below average for companies of similar size in the Indian market ($USD820.35K).

Compensation vs Earnings: Sumit's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NMDC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

Experienced Board: NMDC's board of directors are not considered experienced ( 1.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: NMDC Limited
  • Ticker: NMDC
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹412.190b
  • Shares outstanding: 2.93b
  • Website: https://www.nmdc.co.in

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:45
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.