Earnings Update: NMDC Limited (NSE:NMDC) Just Reported And Analysts Are Boosting Their Estimates

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NMDC Limited (NSE:NMDC) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to ₹69.40 in the week after its latest quarterly results. Results overall were respectable, with statutory earnings of ₹7.44 per share roughly in line with what the analysts had forecast. Revenues of ₹67b came in 3.2% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from NMDC's ten analysts is for revenues of ₹270.7b in 2026. This reflects an okay 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 18% to ₹8.76. In the lead-up to this report, the analysts had been modelling revenues of ₹250.9b and earnings per share (EPS) of ₹7.78 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

See our latest analysis for NMDC

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹74.29, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on NMDC, with the most bullish analyst valuing it at ₹88.95 and the most bearish at ₹57.97 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the NMDC's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 9.8% growth on an annualised basis. That is in line with its 9.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. So although NMDC is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NMDC following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that NMDC will grow in line with the overall industry. The consensus price target held steady at ₹74.29, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple NMDC analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for NMDC that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.