NMDC - A technical-fundamental view

Mar 27, 2022

NMDC
PSU THEME STOCK
NMDC Limited is engaged in the mining of iron ore. The Company's business segments include Iron Ore and Other minerals & services.

For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 6026.68 Crore, down -12.43% from last quarter Total Income of Rs 6882.44 Crore and up 35.10% from last year same quarter Total Income of Rs 4460.97 Crore. Company has reported net profit after tax of Rs 2048.40 Crore in latest quarter.
TTM EPS: 35.48
TTM PE: 4.43
Sector PE: 13.40
Book Value Per Share: 102.02
P/B: 1.55
Mkt Cap (Rs. Cr.): 46,054
Dividend Yield: 4.94
Promoter/FII Holdings: Promoters held 60.79 per cent stake in the company as of 31-Dec-2021, while FIIs owned 5.32 per cent, DIIs 21.85 per cent.

Some Positives:

• Rising Net Cash Flow and Cash from Operating activity
  
• Strong Annual EPS Growth
  
• High Revenue and Profit Growth with High Return on Capital Deployed (ROCE) and Low PE ratio
  
• Company with Low Debt
  
• Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
  
• Book Value per share Improving for last 2 years
  
• Company with Zero Promoter Pledge
  
• High dividends, with rising dividend yields over last five years
  
• Strong Momentum: Price above short, medium and long term moving averages
  

Some Negatives:

• Decline in Net Profit (QoQ)
  
• Decline in Quarterly Net Profit with falling Profit Margin (YoY)
  
• Declining profits every quarter for the past 2 quarters
  
• Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
  

My Personal Opinion: Stock is positive above 166 only. 196 is very important level above which there is no stopping NMDC. But I believe the stock would continue to consolidate for now so I would hold and add more on dips until 130.

NOT A RECOMMENDATION. ONLY FOR EDUCATION PURPOSE. Thanks.

Apr 12, 2022

Trade active

CMP 173