NMDC Limited (NSE:NMDC) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

As you might know, NMDC Limited (NSE:NMDC) recently reported its annual numbers. It was a workmanlike result, with revenues of ₹239b coming in 3.0% ahead of expectations, and statutory earnings per share of ₹7.44, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NMDC after the latest results.

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Taking into account the latest results, the most recent consensus for NMDC from ten analysts is for revenues of ₹269.5b in 2026. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 16% to ₹8.66. Before this earnings report, the analysts had been forecasting revenues of ₹250.1b and earnings per share (EPS) of ₹7.52 in 2026. So it seems there's been a definite increase in optimism about NMDC's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

Check out our latest analysis for NMDC

Despite these upgrades,the analysts have not made any major changes to their price target of ₹73.61, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic NMDC analyst has a price target of ₹89.01 per share, while the most pessimistic values it at ₹55.01. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that NMDC's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NMDC to grow faster than 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 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 2 warning signs for NMDC (1 is a bit unpleasant!) 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.