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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of NMDC Ltd

About the Company - NMDC Ltd

NMDC Ltd. is a Public Limited Listed company incorporated on 15/11/1958 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L13100TG1958GOI001674 and registration number is 001674. Currently Company is involved in the business activities of Mining of iron ores, Mining of gemstones (agate, diamond, emerald, garnet (gem), jasper, rubby/ saphire etc., Manufacture of direct reduction of iron (sponge iron) and other spongy ferrous products, Manufacture of pig iron and spiegeleisen in pigs, blocks or other primary forms, Electric power generation using other non conventional sources. Company’s Total Operating Revenue is Rs. 25881.73 Cr. and Equity Capital is Rs. 293.07 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Mining/MineralsKhanij Bhavan, 10-3-311/A, Hyderabad Telangana 500028ims@nmdc.co.in
http://www.nmdc.co.in
Management
NamePosition Held
Mr. Amitava MukherjeeChairman & Managing Director
Mr. Dilip Kumar MohantyDirector - Production
Mr. Sukriti LikhiGovernment Nominee Director
Mr. Sanjay TandonIndependent Director
Mr. Anil Sadashivrao KambleIndependent Director
Mr. Vishal BabberIndependent Director
Mr. Sanjay SinghIndependent Director
Mr. Vishwanath SureshDirector
Mr. Vinay KumarDirector - Technical
Mr. Abhijit NarendraGovernment Nominee Director

NMDC Ltd. Share Price Update

Share PriceValue
Today₹241.45
Previous Day₹244.35

Basic Stock Data of NMDC Ltd

Market Cap 68,767 Cr.
Current Price 235
High / Low253/104
Stock P/E11.9
Book Value 83.6
Dividend Yield2.83 %
ROCE30.2 %
ROE23.0 %
Face Value 1.00

Data Source: screener.in

Competitors of NMDC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MOIL Ltd 5,718 Cr. 281370/14120.2 1161.31 %14.7 %11.0 % 10.0
Vedanta Ltd 1,02,260 Cr. 275301/20820.5 85.037.0 %21.2 %20.4 % 1.00
Rajdarshan Industries Ltd 15.5 Cr. 49.864.4/26.422.4 71.00.00 %1.52 %1.42 % 10.0
Redington Ltd 16,374 Cr. 209220/13613.6 88.23.44 %24.9 %21.9 % 2.00
Orissa Minerals Development Company Ltd 4,028 Cr. 6,7138,344/2,295 43.00.00 %1.48 %% 1.00
Industry Average25,679.10 Cr1,505.5615.3480.648.35%12.76%10.94%4.80

NMDC Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,2304,3556,8486,5126,7945,8746,7854,7673,3283,7205,8515,3954,014
Expenses1,2021,5892,6072,3363,6813,2634,0612,8692,4772,5793,6893,4012,824
Operating Profit1,0282,7664,2404,1763,1132,6112,7251,8988511,1412,1621,9941,190
OPM %46%64%62%64%46%44%40%40%26%31%37%37%30%
Other Income8910687144891533321464262051,228294321
Interest2243292515183012619
Depreciation546157556061112857484936989
Profit before tax1,0622,8104,2664,2623,1402,6942,9201,9441,1851,2323,2852,2121,404
Tax %27%25%34%25%25%24%36%24%25%27%31%25%27%
Net Profit7522,1582,8363,1862,3272,0481,8661,4459729142,2721,6531,026
EPS in Rs2.467.059.6810.877.946.996.374.933.323.117.755.643.50

NMDC Ltd Quarterly Chart

NMDC Ltd Profit & Loss

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,56410,70412,05812,3566,4568,82811,61512,15311,69915,37025,96517,66718,980
Expenses1,7273,3344,3354,5913,7715,2335,8125,2285,6976,58013,33811,61312,493
Operating Profit5,8377,3707,7237,7652,6853,5955,8036,9256,0028,79012,6266,0546,487
OPM %77%69%64%63%42%41%50%57%51%57%49%34%34%
Other Income8852,2432,1822,1551,6829106675884173517162,0042,048
Interest01320662137401017397566
Depreciation74139151173218197257279295229288336335
Profit before tax6,6489,4619,7539,7474,0844,2876,1767,1946,1148,89613,0167,6468,133
Tax %34%33%34%34%34%40%38%36%41%30%27%28%
Net Profit4,3726,3346,3716,3512,5442,5433,8084,6173,5736,2779,4295,6015,865
EPS in Rs11.0315.9816.0716.016.428.0412.0415.0811.6721.4232.1719.1220.00
Dividend Payout %20%44%53%53%171%64%36%37%45%36%46%35%

NMDC Ltd Profit & Loss Yearly Chart

NMDC Ltd Growth

Compounded Sales Growth
10 Years:5%
5 Years:9%
3 Years:15%
TTM:11%
Compounded Profit Growth
10 Years:-3%
5 Years:5%
3 Years:9%
TTM:11%
Stock Price CAGR
10 Years:8%
5 Years:23%
3 Years:30%
1 Year:95%
Return on Equity
10 Years:19%
5 Years:23%
3 Years:28%
Last Year:23%

NMDC Ltd Balance Sheet

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital396396396396396316316306306293293293293
Reserves11,23127,12229,55031,87028,78422,26624,10125,73827,36729,59117,72522,32824,194
Borrowings00001,49705003645662,0001,8004232,143
Other Liabilities1,2203,2771,4972,1972,0793,2013,7743,4833,0565,0455,0945,2045,965
Total Liabilities12,84830,79631,44434,46432,75625,78428,69129,89131,29436,93024,91228,24832,596
Fixed Assets7471,2671,3661,4682,0582,0953,4573,5123,8103,9333,6623,1993,117
CWIP2483,2475,2977,8019,74711,85512,54513,81915,53017,1581,3331,9982,600
Investments71261219319592612673859910875895935943
Other Assets11,78226,02124,56124,87620,35911,22112,01611,70111,04514,96419,02222,11625,935
Total Assets12,84830,79631,44434,46432,75625,78428,69129,89131,29436,93024,91228,24832,596

NMDC Ltd Reserves and Borrowings Chart

NMDC Ltd Cash Flow

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 2,7783,0973,7343,9992,5022,1093,3764,0022,1267,2666,9422,466
Cash from Investing Activity 4916593,444-5173,6455,171-1,865-789-313-4,316-3,21443
Cash from Financing Activity -727-2,548-5,801-3,449-6,290-7,249-1,557-3,201-1,753-2,591-4,067-2,536
Net Cash Flow2,5421,2081,37633-14431-461160359-339-28

NMDC Ltd Financial Efficiency Indicators

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days493744524543464369514255
Inventory Days
Days Payable
Cash Conversion Cycle493744524543464369514255
Working Capital Days41451161019231120711955102
ROCE %67%34%32%14%16%25%28%23%30%50%30%

NMDC Ltd Financial Efficiency Indicators Chart

NMDC Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters68.29%68.29%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%
FIIs4.63%4.95%6.83%5.32%6.88%5.89%5.94%6.60%7.33%6.99%8.32%9.91%
DIIs20.67%19.99%21.85%21.84%21.81%22.14%20.98%20.23%19.39%18.00%17.73%17.33%
Government0.10%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public6.31%6.77%10.53%12.05%10.51%11.18%12.27%12.34%12.47%14.20%13.16%11.96%
No. of Shareholders3,15,6593,91,2095,20,3886,33,0436,12,3876,55,6586,96,9017,07,7067,13,8327,37,7337,39,3957,49,330

NMDC Ltd Shareholding Pattern Chart

No. of NMDC Ltd Shareholders

NMDC Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Parag Parikh Flexi Cap Fund523403471.97949.98
Mirae Asset Large & Midcap Fund175898991.05319.26
Mirae Asset Midcap Fund137567161.95249.68
SBI Contra Fund137001131.31248.66
Quant Mid Cap Fund128865006.19233.89
ICICI Prudential Equity - Arbitrage Fund76185000.86138.28
Nippon India Growth Fund75086910.64136.28
Kotak Equity Arbitrage Fund - Regular Plan64755000.37117.53
Quant Active Fund63550001.73115.34
Aditya Birla Sun Life Arbitrage Fund60975001.74110.67

NMDC Ltd ROCE Trend

NMDC Ltd EPS Trend

NMDC Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)19.1132.0020.7011.6714.69
Diluted EPS (Rs.)19.1132.0020.7011.6714.69
Cash EPS (Rs.)20.0433.0322.1012.7316.06
Book Value[Excl.RevalReserv]/Share (Rs.)77.23119.43102.0290.4185.10
Book Value[Incl.RevalReserv]/Share (Rs.)77.23119.43102.0290.4185.10
Revenue From Operations / Share (Rs.)60.2888.3152.4538.2139.69
PBDIT / Share (Rs.)23.2745.3931.1921.2824.54
PBIT / Share (Rs.)22.1344.4030.4120.3223.63
PBT / Share (Rs.)26.0944.2730.3519.9723.50
Net Profit / Share (Rs.)18.9032.0421.3211.7615.14
NP After MI And SOA / Share (Rs.)19.1132.0021.4211.6715.08
PBDIT Margin (%)38.6051.3959.4755.6961.82
PBIT Margin (%)36.7050.2757.9853.1759.52
PBT Margin (%)43.2850.1257.8752.2659.19
Net Profit Margin (%)31.3436.2840.6430.7838.15
NP After MI And SOA Margin (%)31.7036.2440.8330.5438.00
Return on Networth / Equity (%)24.7626.8021.0012.9117.73
Return on Capital Employeed (%)26.9634.3228.3821.8126.96
Return On Assets (%)19.8220.9116.9911.4115.45
Long Term Debt / Equity (X)0.000.040.010.000.00
Total Debt / Equity (X)0.010.090.060.020.01
Asset Turnover Ratio (%)0.480.630.450.380.41
Current Ratio (X)3.762.281.912.642.60
Quick Ratio (X)3.131.971.752.382.39
Inventory Turnover Ratio (X)0.310.400.490.560.68
Dividend Payout Ratio (NP) (%)19.6146.0536.2245.3236.59
Dividend Payout Ratio (CP) (%)18.5044.6834.9541.8734.50
Earning Retention Ratio (%)80.3953.9563.7854.6863.41
Cash Earning Retention Ratio (%)81.5055.3265.0558.1365.50
Interest Coverage Ratio (X)90.67340.53543.78659.54186.34
Interest Coverage Ratio (Post Tax) (X)58.17241.45372.63375.37116.02
Enterprise Value (Cr.)26039.0743142.3935783.9122631.3627648.34
EV / Net Operating Revenue (X)1.471.672.331.932.27
EV / EBITDA (X)3.823.243.913.473.68
MarketCap / Net Operating Revenue (X)1.851.842.582.092.62
Retention Ratios (%)80.3853.9463.7754.6763.40
Price / BV (X)1.451.361.330.881.22
Price / Net Operating Revenue (X)1.851.842.582.092.62
EarningsYield0.170.190.150.140.14

NMDC Ltd Profitability Ratios (%)

NMDC Ltd Liquidity Ratios

NMDC Ltd Liquidity Ratios (%)

NMDC Ltd Interest Coverage Ratios (%)

NMDC Ltd Valuation Ratios

Fair Value of NMDC Ltd Stock

Fair Value: ₹235.29

The stock is undervalued by 0.12% compared to the current price ₹235

*Investments are subject to market risks

Strength and Weakness of NMDC Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 29.08%, which is a positive sign.
  2. The company has higher reserves (24,759.00 cr) compared to borrowings (714.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (12.62 cr) and profit (7.38 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 28.18 and average Dividend Yield of 51.53%.
  2. The stock has a high average Working Capital Days of 56.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 48.00, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in NMDC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE