NMDC Steel Limited (NSLNISP) AI Stock Analysis

• Market Cap: ₹118.98B
• Dividend Yield: N/A
• Average Volume (3M): 555.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: 85.42%
• EPS Growth: 48.66%
• Country: IN
• Employees: 1,026
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): -0.83
• Shares Outstanding: 2,930,606,000
• 10 Day Avg. Volume: 328,435
• 30 Day Avg. Volume: 555,778
• PEG Ratio: -0.08
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 6.49
• 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: 53 Neutral
• Price Target: ₹39.00 ▼(-14.66% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

NMDC Steel Limited's overall stock score is primarily impacted by its financial performance, which highlights significant profitability challenges despite some cash flow improvements. Technical analysis provides a neutral outlook, while valuation concerns due to negative earnings further weigh down the score. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong revenue growth

A 67.8% reported revenue increase reflects substantial top-line expansion and improving market traction. Sustained higher sales volumes can spread fixed costs at the Nagarnar plant, improve operating leverage and provide the scale needed to support margin recovery and reinvestment over the next few months.

Positive free cash flow

A material positive free cash flow shows the business is generating real liquidity despite accounting losses. Durable cash generation reduces immediate refinancing pressure, funds working capital and targeted capex, and provides management optionality to invest in efficiency improvements that support medium‑term stability.

Integrated asset base

Control of an integrated steelmaking facility is a structural competitive advantage: it enables product mix flexibility, closer control of yields and quality, and potential cost efficiencies. Vertical integration supports reliable supply to customers and underpins durable operational improvements as throughput rises.

Negative Factors

Loss-making operations

Sustained negative margins indicate the company is not converting sales into profits. Persistent losses erode equity, limit internal funding for growth or repairs, raise the likelihood of external financing, and constrain management's ability to execute long‑term strategic investments without improving core profitability.

High operating costs

Structural high operating costs and negative gross/EBITDA margins point to inefficiencies or expensive inputs. Even with revenue growth, elevated unit costs will prevent durable margin recovery unless addressed through process, sourcing or technological improvements, limiting sustainable profitability.

Single-plant concentration risk

Earnings are highly dependent on utilization and ramp-up of the Nagarnar plant. Single-asset concentration increases exposure to operational disruptions, maintenance issues and logistics constraints, creating durable revenue and margin volatility until diversification or redundancy is established.

NMDC Steel Limited Business Overview & Revenue Model

Company Description

NMDC Iron & Steel Plant in Nagarnar explores for and produces iron ore. The plant is located in India.

How the Company Makes Money

NMDC Steel generates revenue primarily through the sale of its steel products to various industries, including construction, automotive, and manufacturing. The company's key revenue streams include the sale of steel billets, sheets, and specialized alloy steels. Additionally, NMDC Steel benefits from long-term contracts with major clients and partnerships that provide a steady demand for its products. Factors such as fluctuating steel prices, efficient production processes, and increasing demand in infrastructure projects significantly influence the company's earnings. Moreover, the company is likely to explore opportunities for exports, which could provide additional revenue streams.

NMDC Steel Limited Financial Statement Overview

Summary

NMDC Steel Limited faces significant financial challenges, particularly in terms of profitability and income statement health. Despite revenue growth, the company struggles with high operational costs leading to sustained losses. The balance sheet shows moderate leverage, which is manageable, although negative shareholder returns are a concern. Cash flow improvements provide a silver lining, highlighting better cash management. Continued focus on operational efficiency and cost reduction is crucial for returning to profitability and enhancing shareholder value.

Income Statement

The income statement reveals significant challenges for NMDC Steel Limited, with a negative net income and EBIT. The net profit margin stands at -27.91% for 2025, indicating substantial losses relative to revenue. Although revenue showed growth from 2024 to 2025, the company is still struggling with profitability, as seen in the negative gross and EBITDA margins. This suggests operational inefficiencies and high costs relative to income.

Balance Sheet

The balance sheet reflects a moderate position with a debt-to-equity ratio of 0.45 for 2025, indicating a fair balance between debt and equity. However, the return on equity is negative due to losses, which is a concern for shareholders. The equity ratio stands at 46.06%, suggesting a reasonable proportion of equity in financing assets, but the company must manage its liabilities to enhance financial stability.

Cash Flow

The cash flow statement shows improvement with a positive free cash flow of 15,384 million for 2025, a significant turnaround from previous years. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The company has improved its cash flow management, but must continue this trend to ensure sustainable financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2021	Mar 2020
Income Statement
Total Revenue	98.45B	85.03B	30.49B	0.00	0.00	0.00
Gross Profit	21.16B	9.66B	-12.77B	0.00	0.00	0.00
EBITDA	-9.09B	-17.17B	-13.18B	0.00	-71.67K	7.36K
Net Income	-18.01B	-23.74B	-15.60B	0.00	-72.32K	-73.86K
Balance Sheet
Total Assets	0.00	284.70B	293.68B	255.68B	39.02K	116.05K
Cash, Cash Equivalents and Short-Term Investments	3.71B	9.62B	1.82B	6.55B	39.02K	115.86K
Total Debt	0.00	59.09B	66.62B	38.42B	0.00	0.00
Total Liabilities	-131.14B	153.55B	138.80B	85.20B	30.85K	35.57K
Stockholders Equity	131.14B	131.14B	154.88B	170.49B	8.16K	80.48K
Cash Flow
Free Cash Flow	0.00	15.38B	-33.17B	-6.39B	-78.76K	-76.50K
Operating Cash Flow	0.00	19.66B	-27.33B	15.16B	-78.76K	-76.50K
Investing Cash Flow	0.00	-5.06B	-6.90B	-22.07B	1.92K	8.47K
Financing Cash Flow	0.00	-14.60B	28.08B	12.93B	0.00	0.00

NMDC Steel Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 45.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NSLNISP, the sentiment is Neutral. The current price of 45.7 is above the 20-day moving average (MA) of 40.62, above the 50-day MA of 41.55, and above the 200-day MA of 41.30, indicating a bearish trend. The MACD of -0.61 indicates Negative momentum. The RSI at 49.63 is Neutral, neither overbought nor oversold. The STOCH value of 72.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:NSLNISP.

NMDC Steel Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SALSTEEL	57 Neutral	₹4.92B	-65.36	―	―	0.19%	-2962.74%
MAHASTEEL	54 Neutral	₹12.44B	113.80	―	―	11.83%	124.74%
NSLNISP	53 Neutral	₹118.98B	-14.75	―	―	85.42%	48.66%
SHYAMCENT	49 Neutral	₹1.08B	-7.86	―	―	-41.73%	-37.19%
VISASTEEL	44 Neutral	₹4.27B	-0.82	―	―	-0.58%	-1076.68%

NMDC Steel Limited Corporate Events

NMDC Steel Announces Board Change as Director (Personnel) Retires

NMDC Steel Limited has announced that Priyadarshini Gaddam has ceased to be Director (Personnel) and Executive Director of the company with effect from January 31, 2026, upon attaining the age of superannuation. Following her retirement, the company has updated its board composition, with existing functional directors taking on additional charges for key roles, signalling continuity in management and governance while the Ministry of Steel oversees further board-level arrangements.

NMDC Steel CMD Amitava Mukherjee Given Additional Charge as Director (Finance)

NMDC Steel Limited has announced that its Chairman and Managing Director, Shri Amitava Mukherjee, has been given additional charge of the post of Director (Finance) for a three-month period from 6 December 2025 to 5 March 2026, or until a regular appointee takes over, whichever is earlier. The move, effected through an order from India’s Ministry of Steel, concentrates key executive and financial oversight responsibilities in Mukherjee’s hands on an interim basis, signaling a temporary consolidation of leadership while the company and government finalize a permanent finance director, with potential implications for continuity in financial management and governance during the transition.