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NMDC Limited (IN:NMDC)
:NMDC
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NMDC Limited (NMDC) AI Stock Analysis

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IN:NMDC

NMDC Limited

(NMDC)

Rating:75Outperform
Price Target:
₹78.00
▲(4.70% Upside)
NMDC Limited's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's solid profitability and stable balance sheet are key strengths, while the low P/E ratio and high dividend yield enhance its appeal. However, technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

NMDC Limited (NMDC) vs. iShares MSCI India ETF (INDA)

NMDC Limited Business Overview & Revenue Model

Company DescriptionNMDC Limited (NMDC) is a state-controlled mineral producer based in India and is one of the country's largest iron ore producers. Established in 1958, NMDC operates in the mining sector, focusing primarily on the exploration and production of iron ore, which is a critical raw material for steel production. In addition to iron ore, the company is involved in other mineral resources such as copper, rock phosphate, limestone, dolomite, gypsum, and magnesite. NMDC is also engaged in value-added projects and is expanding its activities into steel production.
How the Company Makes MoneyNMDC Limited makes money primarily through the mining and sale of iron ore, which accounts for the majority of its revenue. The company operates large mining facilities in India, including its flagship mines in Chhattisgarh and Karnataka, which produce high-grade iron ore for both domestic use and export. NMDC's revenue is significantly influenced by the global iron ore prices, which can fluctuate based on demand from major steel-producing countries like China. The company also generates income from the sale of other minerals, although these constitute a smaller portion of its overall revenue. Further, NMDC has ventured into steel production, which is expected to diversify its revenue streams in the future. Key partnerships, such as joint ventures with other companies for resource development and infrastructure projects, also contribute to NMDC's earnings by enhancing operational efficiency and expanding its market reach.

NMDC Limited Financial Statement Overview

Summary
NMDC Limited shows strong profitability and a stable balance sheet with consistent revenue growth and manageable leverage. However, declining EBIT margins and free cash flow highlight potential areas for improvement.
Income Statement
85
Very Positive
NMDC Limited demonstrates strong profitability with a high gross profit margin and a commendable net profit margin. The company has shown consistent revenue growth over the past years, which is a positive indicator of its market position and operational efficiency. However, a decline in EBIT margin in the latest year compared to previous periods suggests some pressures on operating efficiency.
Balance Sheet
78
Positive
The balance sheet of NMDC Limited is stable with a healthy equity ratio indicating strong asset backing by equity. The debt-to-equity ratio is manageable, reflecting moderate leverage, which is typical for the steel industry. However, there has been an increase in total debt in the latest year which could indicate rising financial obligations.
Cash Flow
72
Positive
While NMDC Limited has shown strong operating cash flow, the recent decline in free cash flow growth rate is concerning. The company's ability to convert operating cash flow to net income remains robust, but the high capital expenditures have pressured free cash flow, which could impact future investments or debt repayments.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue233.90B239.06B213.08B176.67B259.65B153.70B
Gross Profit118.13B131.67B110.99B94.57B166.34B122.63B
EBITDA96.89B97.42B85.27B82.32B134.89B92.38B
Net Income64.77B65.42B55.75B56.01B94.29B62.77B
Balance Sheet
Total Assets0.00410.07B356.61B299.53B261.48B369.30B
Cash, Cash Equivalents and Short-Term Investments142.64B100.92B122.18B70.34B68.23B37.23B
Total Debt0.0042.76B33.59B21.28B30.36B23.30B
Total Liabilities-283.78B113.00B99.88B73.18B81.17B70.32B
Stockholders Equity283.78B296.96B256.56B226.21B180.18B298.84B
Cash Flow
Free Cash Flow0.00-13.36B55.48B5.90B57.43B56.44B
Operating Cash Flow0.0018.94B73.95B18.38B69.42B72.66B
Investing Cash Flow0.003.06B-60.76B2.02B-32.14B-43.16B
Financing Cash Flow0.00-22.25B-13.02B-20.67B-40.67B-25.91B

NMDC Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price74.50
Price Trends
50DMA
69.90
Positive
100DMA
68.95
Positive
200DMA
67.20
Positive
Market Momentum
MACD
0.84
Negative
RSI
64.11
Neutral
STOCH
89.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NMDC, the sentiment is Positive. The current price of 74.5 is above the 20-day moving average (MA) of 70.88, above the 50-day MA of 69.90, and above the 200-day MA of 67.20, indicating a bullish trend. The MACD of 0.84 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 89.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NMDC.

NMDC Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
₹389.64B6.80
4.71%38.31%155.40%
75
Outperform
₹620.38B24.12
0.40%6.03%-1.70%
75
Outperform
₹654.99B10.02
4.43%18.30%10.95%
66
Neutral
₹534.08B17.60
1.55%-0.58%3.36%
62
Neutral
$10.36B6.350.80%2.84%3.10%-36.03%
61
Neutral
₹675.34B44.10
0.08%-5.12%7.49%
57
Neutral
₹1.06T35.33
0.19%-5.12%-47.40%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:NMDC
NMDC Limited
74.50
7.94
11.93%
IN:JINDALSTEL
Jindal Steel & Power Ltd.
1,034.30
74.50
7.76%
IN:JSL
Jindal Stainless Limited
753.10
16.37
2.22%
IN:LLOYDSME
Lloyds Metals & Energy Ltd.
1,303.30
553.66
73.86%
IN:NATIONALUM
National Aluminium Co. Ltd.
210.35
43.18
25.83%
IN:SAIL
Steel Authority of India Limited
131.40
4.83
3.82%

NMDC Limited Corporate Events

NMDC Limited Updates Iron Ore Prices Effective August 2025
Aug 1, 2025

NMDC Limited has announced new pricing for its iron ore products effective from August 1, 2025. The price for Baila Lump is set at ₹6,100 per ton, while Baila Fines is priced at ₹5,250 per ton. These prices are inclusive of certain fees and royalties but exclude taxes such as GST and environmental cess. This pricing update reflects NMDC’s strategic positioning in the market and could impact stakeholders by influencing the cost of raw materials for steel manufacturers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025