NMDC Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 50860.66 Crore) operating in Mining sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 6932.75 Crore, up 55.41 % from last quarter Total Income of Rs 4460.97 Crore and up 108.76 % from last year same quarter Total Income of Rs 3320.95 Crore. Company reported net profit after tax of Rs 2835.54 Crore in latest quarter.
Investment Rationale
With NMDC’s board approving the scheme of demerger of steel plant, the brokerage believes the Street will start attributing value to the same. Besides, NMDC thus far has funded the steel plant capex through internal accruals. All the expenditure made by NMDC on behalf of steel plant post March-21 would be reimbursed by the new entity. Hence, NMDC would focus on the organic, high returns capex in iron ore business. Further, it rolls over to Q3FY23E resulting in a revised TP of INR215 on an unchanged 5x EBITDA. It upgrades to ‘BUY/SO’ from ‘HOLD/SN’.
Promoter/FII Holdings
Promoters held 68.3 per cent stake in the company as of March 31, 2021, while FIIs held 4.6 per cent, DIIs 20.8 per cent and public and others 6.3 per cent.
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