NMDC Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 52150.13 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
The brokerage values the stock at INR215/share on SOTP, valuing the Iron Ore business at 5.0x FY23E EV/EBITDA. It adds the value of the steel plant at 25% of the book value. At CMP, the stock is trading at 4.0x the core Iron Ore Mining business and provides an attractive dividend yield of ~13%.
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.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
