NMDC Limited Just Beat Revenue Estimates By 12%

Last week saw the newest quarterly earnings release from NMDC Limited (NSE:NMDC), an important milestone in the company's journey to build a stronger business. It was a mildly positive result, with revenues exceeding expectations at ₹54b, while statutory earnings per share (EPS) of ₹19.11 were in line with analyst forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for NMDC

After the latest results, the 14 analysts covering NMDC are now predicting revenues of ₹235.2b in 2025. If met, this would reflect a notable 14% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹22.33, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹233.5b and earnings per share (EPS) of ₹21.17 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 18% to ₹225. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic NMDC analyst has a price target of ₹290 per share, while the most pessimistic values it at ₹155. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that NMDC's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this to the 181 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.8% per year. Factoring in the forecast slowdown in growth, it looks like NMDC is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NMDC's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on NMDC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for NMDC going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for NMDC that you need to take into consideration.

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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.