NMDC Limited (NMDC) AI Stock Analysis

• Market Cap: ₹713.46B
• Dividend Yield: 4.05%
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.39
• Revenue Growth: 20.05%
• EPS Growth: 15.58%
• Country: IN
• Employees: 5,630
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 1.90
• Shares Outstanding: 8,791,817,000
• 10 Day Avg. Volume: 1,096,731
• 30 Day Avg. Volume: 1,270,976
• PEG Ratio: 0.54
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 2.57
• P/FCF Ratio: -45.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹95.00 ▲(13.26% Upside)

NMDC Limited's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's stable balance sheet and consistent revenue growth are positive indicators, although declining EBIT margins and free cash flow present challenges. Technical analysis suggests a generally positive trend, but with some short-term caution due to mixed momentum indicators.

Positive Factors

Revenue Growth

Double-digit revenue growth (~20%) indicates sustained demand for NMDC's iron ore and expanding sales scale. Persistent top-line expansion supports operating cash generation, funds capital projects and dividends, and strengthens negotiating position with customers over multiple quarters.

Profitability

Strong gross and net margins reflect efficient mining and cost control versus peers. Durable profitability provides a buffer through commodity cycles, sustains operating cash flow, and underpins the company’s ability to fund reinvestment and shareholder returns across the medium term.

Balance Sheet Strength

A stable balance sheet and manageable leverage give NMDC financial resilience. Strong equity backing supports capital-intensive mining operations, enables continued investment in infrastructure and logistics, and preserves flexibility to withstand industry cyclicality over upcoming quarters.

Negative Factors

Declining EBIT Margins

A decline in EBIT margin signals weakening core operating profitability, possibly from rising costs or adverse product mix. Continued margin pressure would erode operating cash flow, limit reinvestment capacity and constrain dividends or deleveraging over several quarters.

Free Cash Flow Pressure

A recent drop in free cash flow growth and high capex requirements reduce financial flexibility. Sustained capex intensity for mine expansion or maintenance can limit ability to repay debt, fund dividends or pursue strategic initiatives across the 2–6 month horizon.

Rising Total Debt

An uptick in total debt increases interest and principal obligations, weakening the margin of safety. Even with manageable leverage historically, higher debt levels reduce capacity to absorb commodity shocks or fund growth without increasing financing costs over the coming quarters.

NMDC Limited Business Overview & Revenue Model

Company Description

NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India. It explores for a range of minerals, such as iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands, etc., as well as gold and coal. The company primarily holds interests in the Bailadila iron ore mines located in Kirandul Complex and Bacheli Complex, Chattisgarh; Donimalai iron ore mines located in various regions, including Donimalai, Kumaraswamy, and Ramandurg in Karnataka; and a diamond mining project located in Panna, Madhya Pradesh. It also produces and sells sponge iron and pellets; and generates and sells wind power. The company also exports its iron ore products to Japan and South Korea. The company was formerly known as National Mineral Development Corporation Limited. NMDC Limited was incorporated in 1958 and is headquartered in Hyderabad, India.

How the Company Makes Money

NMDC generates revenue primarily through the sale of iron ore, which constitutes the bulk of its earnings. The company operates several mines in India, including the Bailadila Iron Ore Mine in Chhattisgarh and the Donimalai Iron Ore Mine in Karnataka, where it extracts and processes iron ore to meet the demands of both domestic and international markets. Key revenue streams include direct sales of iron ore to steel manufacturers, long-term contracts with industrial clients, and exports to global markets. Additionally, NMDC benefits from strategic partnerships with various steel producers and has initiatives aimed at enhancing its production capacity and operational efficiency. Factors contributing to its earnings also include fluctuations in global iron ore prices, government policies related to mining and mineral extraction, and the overall demand in the steel industry.

NMDC Limited Financial Statement Overview

Summary

NMDC Limited presents a solid financial standing with strong profitability and a stable balance sheet. The company's consistent revenue growth and manageable leverage are positive indicators. However, declining EBIT margins and free cash flow in the latest year highlight potential areas for improvement.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	252.30B	239.06B	213.08B	176.67B	259.65B	153.70B
Gross Profit	132.51B	127.49B	110.99B	94.57B	163.19B	120.16B
EBITDA	82.05B	81.19B	72.87B	60.52B	126.25B	87.90B
Net Income	65.39B	65.42B	55.75B	56.01B	94.29B	62.77B
Balance Sheet
Total Assets	0.00	410.07B	356.61B	299.53B	261.48B	369.30B
Cash, Cash Equivalents and Short-Term Investments	98.07B	98.07B	122.18B	70.34B	68.23B	37.23B
Total Debt	0.00	42.76B	33.59B	21.28B	18.00B	23.30B
Total Liabilities	-297.07B	113.00B	99.88B	73.18B	81.17B	70.32B
Stockholders Equity	297.07B	296.96B	256.56B	226.21B	180.18B	298.84B
Cash Flow
Free Cash Flow	0.00	-13.36B	55.48B	5.90B	57.43B	56.44B
Operating Cash Flow	0.00	18.94B	73.95B	18.38B	69.42B	72.66B
Investing Cash Flow	0.00	3.06B	-60.76B	2.02B	-32.14B	-43.16B
Financing Cash Flow	0.00	-22.25B	-13.02B	-20.67B	-40.67B	-25.91B

NMDC Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 83.88 is above the 20-day moving average (MA) of 81.32, above the 50-day MA of 79.00, and above the 200-day MA of 73.25, indicating a neutral trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 72.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NMDC.

NMDC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NATIONALUM	84 Outperform	₹706.55B	12.83	―	3.62%	30.80%	97.08%
NMDC	75 Outperform	₹713.46B	10.60	―	4.05%	20.05%	15.58%
SAIL	73 Outperform	₹623.92B	23.29	―	1.21%	6.45%	1.13%
JSL	71 Outperform	₹678.70B	22.69	―	0.38%	9.04%	12.80%
LLOYDSME	67 Neutral	₹581.94B	32.95	―	0.07%	22.86%	20.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JINDALSTEL	57 Neutral	₹1.15T	59.18	―	0.20%	-2.21%	-46.30%

NMDC Limited Corporate Events

NMDC Posts Higher Iron Ore Output and Sales in December 2025

NMDC Limited reported provisional iron ore production of 5.40 million tonnes and sales of 4.64 million tonnes for December 2025, reflecting an increase from 4.71 million tonnes of production and 3.91 million tonnes of sales in December 2024. Cumulatively for the financial year up to December 2025, production rose to 36.89 million tonnes from 30.77 million tonnes a year earlier, while sales climbed to 34.92 million tonnes from 31.80 million tonnes, driven by higher output from both its Chhattisgarh and Karnataka operations, underscoring the company’s strengthening operational performance and its solidifying position in India’s iron ore supply chain.

NMDC Limited Clarifies Share Volume Movement

NMDC Limited has issued a clarification regarding the recent volume movement in its shares. The company stated that all necessary information and announcements have been disclosed to the stock exchanges as per regulatory requirements, and there is no additional price-sensitive information to share at this time.

NMDC Limited Reports Increased Iron Ore Production and Sales for October 2025

NMDC Limited has reported its provisional production and sales figures for iron ore for October 2025, showing a slight increase compared to the previous year. The company’s operations in Chhattisgarh and Karnataka have contributed to a cumulative production of 26.47 million tonnes and sales of 26.14 million tonnes up to October 2025, indicating a positive trend in its operational performance.