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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 526371 | NSE: NMDC

Fundamental Analysis of NMDC Ltd

Basic Stock Data of NMDC Ltd

Last Updated: July 19, 2024, 10:49 pm

Market Cap 67,041 Cr.
Current Price 229
High / Low286/110
Stock P/E11.6
Book Value 87.5
Dividend Yield2.89 %
ROCE31.9 %
ROE23.9 %
Face Value 1.00
PEG Ratio0.86

Data Source: screener.in

Competitors of NMDC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Orissa Minerals Development Company Ltd 4,248 Cr. 7,0808,526/3,648 43.00.00 %1.48 %% 1.00
Coal India Ltd 3,00,741 Cr. 488527/2268.05 1344.97 %65.1 %53.4 % 10.0
Vedanta Ltd 1,63,483 Cr. 440507/20844.4 82.66.71 %20.9 %10.5 % 1.00
Redington Ltd 15,560 Cr. 199238/13612.8 96.63.12 %19.5 %16.8 % 2.00
MOIL Ltd 9,937 Cr. 488588/18233.9 1210.76 %16.5 %12.5 % 10.0
Industry Average49,686.47 Cr913.3215.2371.391.68%18.54%18.09%5.10

NMDC Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4,3556,8486,5126,7945,8746,7854,7673,3283,7205,8515,3954,0145,410
Expenses1,5892,6072,3363,6813,2634,0612,8692,4772,5793,6893,4012,8243,403
Operating Profit2,7664,2404,1763,1132,6112,7251,8988511,1412,1621,9941,1902,007
OPM %64%62%64%46%44%40%40%26%31%37%37%30%37%
Other Income10687144891533321464262051,22829432184
Interest24329251518301261932
Depreciation615755606111285748493698982
Profit before tax2,8104,2664,2623,1402,6942,9201,9441,1851,2323,2852,2121,4041,977
Tax %25%34%25%25%24%36%24%25%27%31%25%27%26%
Net Profit2,1582,8363,1862,3272,0481,8661,4459729142,2721,6531,0261,482
EPS in Rs7.059.6810.877.946.996.374.933.323.117.755.643.505.06

Last Updated: July 10, 2024, 8:12 pm

NMDC Ltd Quarterly Chart

NMDC Ltd Profit & Loss - Annual Report

Last Updated: July 10, 2024, 8:12 pm

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,56410,70412,05812,3566,4568,82811,61512,15311,69915,37025,96517,66720,670
Expenses1,7273,3344,3354,5913,7715,2335,8125,2285,6976,58013,33811,61313,316
Operating Profit5,8377,3707,7237,7652,6853,5955,8036,9256,0028,79012,6266,0547,353
OPM %77%69%64%63%42%41%50%57%51%57%49%34%36%
Other Income8852,2432,1822,1551,6829106675884173517162,0041,927
Interest01320662137401017397569
Depreciation74139151173218197257279295229288336333
Profit before tax6,6489,4619,7539,7474,0844,2876,1767,1946,1148,89613,0167,6468,878
Tax %34%33%34%34%34%40%38%36%41%30%27%28%
Net Profit4,3726,3346,3716,3512,5442,5433,8084,6173,5736,2779,4295,6016,433
EPS in Rs11.0315.9816.0716.016.428.0412.0415.0811.6721.4232.1719.1221.95
Dividend Payout %20%44%53%53%171%64%36%37%45%36%46%35%

NMDC Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.58%-0.31%-59.94%-0.04%49.74%21.24%-22.61%75.68%50.22%-40.60%
Change in YoY Net Profit Growth (%)0.00%-0.90%-59.63%59.90%49.78%-28.50%-43.86%98.29%-25.46%-90.81%

NMDC Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:12%
3 Years:12%
TTM:21%
Compounded Profit Growth
10 Years:-1%
5 Years:5%
3 Years:-3%
TTM:23%
Stock Price CAGR
10 Years:6%
5 Years:22%
3 Years:21%
1 Year:116%
Return on Equity
10 Years:19%
5 Years:24%
3 Years:29%
Last Year:24%

Last Updated: July 18, 2024, 5:19 pm

NMDC Ltd Balance Sheet

Last Updated: July 10, 2024, 8:12 pm

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3,0973,7343,9992,5022,1093,3764,0022,1267,2666,9422,4667,395
Cash from Investing Activity 6593,444-5173,6455,171-1,865-789-313-4,316-3,21443-6,076
Cash from Financing Activity -2,548-5,801-3,449-6,290-7,249-1,557-3,201-1,753-2,591-4,067-2,536-1,302
Net Cash Flow1,2081,37633-14431-461160359-339-2816

NMDC Ltd Free Cash Flow

MonthMar 2009Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.007.007.007.001.003.00-495.00-358.00-560.006.0011.00-417.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

NMDC Ltd Free Cash Flow Chart

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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters68.29%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%60.79%
FIIs4.95%6.83%5.32%6.88%5.89%5.94%6.60%7.33%6.99%8.32%9.91%12.60%
DIIs19.99%21.85%21.84%21.81%22.14%20.98%20.23%19.39%18.00%17.73%17.33%14.09%
Public6.77%10.53%12.05%10.51%11.18%12.27%12.34%12.47%14.20%13.16%11.96%12.51%
No. of Shareholders3,91,2095,20,3886,33,0436,12,3876,55,6586,96,9017,07,7067,13,8327,37,7337,39,3957,49,3308,57,003

NMDC Ltd Shareholding Pattern Chart

No. of NMDC Ltd Shareholders

NMDC Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Contra Fund13,700,1131.28301.22,050,0002024-07-19568.3%
SBI Arbitrage Opportunities Fund6,808,5000.56149.682,050,0002024-07-19232.12%
ICICI Prudential Equity - Arbitrage Fund5,836,5000.79128.322,050,0002024-07-19184.71%
Kotak Equity Arbitrage Fund - Regular Plan5,548,5000.34121.982,050,0002024-07-19170.66%
UTI Nifty200 Momentum 30 Index Fund4,481,7142.3998.532,050,0002024-07-19118.62%
Kotak Equity Savings Fund - Regular Plan2,866,5001.4663.022,050,0002024-07-1939.83%
Kotak Balanced Advantage Fund2,835,0000.462.332,050,0002024-07-1938.29%
UTI Aggressive Hybrid Fund2,148,5780.8947.242,050,0002024-07-194.81%
SBI PSU Fund2,050,0003.1545.072,050,0002024-07-190%
UTI Large & Mid Cap Fund1,971,0051.7343.332,050,0002024-07-19-3.85%

NMDC Ltd ROCE Trend

NMDC Ltd EPS Trend

NMDC Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)19.0219.1132.0020.7011.67
Diluted EPS (Rs.)19.0219.1132.0020.7011.67
Cash EPS (Rs.)20.2120.0433.0322.1012.73
Book Value[Excl.RevalReserv]/Share (Rs.)87.6077.23119.43102.0290.41
Book Value[Incl.RevalReserv]/Share (Rs.)87.6077.23119.43102.0290.41
Revenue From Operations / Share (Rs.)72.7160.2888.3152.4538.21
PBDIT / Share (Rs.)29.5623.2745.3931.1921.28
PBIT / Share (Rs.)28.3722.1344.4030.4120.32
PBT / Share (Rs.)27.1426.0944.2730.3519.97
Net Profit / Share (Rs.)19.0118.9032.0421.3211.76
NP After MI And SOA / Share (Rs.)19.0219.1132.0021.4211.67
PBDIT Margin (%)40.6538.6051.3959.4755.69
PBIT Margin (%)39.0136.7050.2757.9853.17
PBT Margin (%)37.3243.2850.1257.8752.26
Net Profit Margin (%)26.1431.3436.2840.6430.78
NP After MI And SOA Margin (%)26.1631.7036.2440.8330.54
Return on Networth / Equity (%)21.7124.7626.8021.0012.91
Return on Capital Employeed (%)30.4926.9634.3228.3821.81
Return On Assets (%)15.6319.8220.9116.9911.41
Long Term Debt / Equity (X)0.000.000.040.010.00
Total Debt / Equity (X)0.130.010.090.060.02
Asset Turnover Ratio (%)0.660.480.630.450.38
Current Ratio (X)2.563.762.281.912.64
Quick Ratio (X)2.233.131.971.752.38
Inventory Turnover Ratio (X)0.010.310.400.490.56
Dividend Payout Ratio (NP) (%)0.0019.6146.0536.2245.32
Dividend Payout Ratio (CP) (%)0.0018.5044.6834.9541.87
Earning Retention Ratio (%)0.0080.3953.9563.7854.68
Cash Earning Retention Ratio (%)0.0081.5055.3265.0558.13
Interest Coverage Ratio (X)110.7390.67340.53543.78659.54
Interest Coverage Ratio (Post Tax) (X)75.8358.17241.45372.63375.37
Enterprise Value (Cr.)50105.1126039.0743142.3935783.9122631.36
EV / Net Operating Revenue (X)2.351.471.672.331.93
EV / EBITDA (X)5.783.823.243.913.47
MarketCap / Net Operating Revenue (X)2.771.851.842.582.09
Retention Ratios (%)0.0080.3853.9463.7754.67
Price / BV (X)2.301.451.361.330.88
Price / Net Operating Revenue (X)2.771.851.842.582.09
EarningsYield0.090.170.190.150.14

NMDC Ltd Profitability Ratios (%)

NMDC Ltd Liquidity Ratios

NMDC Ltd Liquidity Ratios (%)

NMDC Ltd Interest Coverage Ratios (%)

NMDC Ltd Valuation Ratios

Fair Value

Fair Value: 249.60

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 8.99% compared to the current price 229

Intrinsic Value: 283.21

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 23.67% compared to the current price 229

Last 5 Year EPS CAGR: 13.47%

*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 (25,983.75 cr) compared to borrowings (875.75 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (12.77 cr) and profit (7.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 56.33, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 48.00, which may not be favorable.

Should I Buy NMDC Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in NMDC Ltd:
    1. Net Profit Margin: 26.14%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 30.49% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.71% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 75.83
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.23
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 11.6 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.13
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

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

FAQ

What is the latest fair value of NMDC Ltd?

The latest fair value of NMDC Ltd is ₹249.60.

What is the Market Cap of NMDC Ltd?

The Market Cap of NMDC Ltd is 67,041 Cr..

What is the current Stock Price of NMDC Ltd as on 21 July 2024?

The current stock price of NMDC Ltd as on 21 July 2024 is 229.

What is the High / Low of NMDC Ltd stocks in FY 2024?

In FY 2024, the High / Low of NMDC Ltd stocks is 286/110.

What is the Stock P/E of NMDC Ltd?

The Stock P/E of NMDC Ltd is 11.6.

What is the Book Value of NMDC Ltd?

The Book Value of NMDC Ltd is 87.5.

What is the Dividend Yield of NMDC Ltd?

The Dividend Yield of NMDC Ltd is 2.89 %.

What is the ROCE of NMDC Ltd?

The ROCE of NMDC Ltd is 31.9 %.

What is the ROE of NMDC Ltd?

The ROE of NMDC Ltd is 23.9 %.

What is the Face Value of NMDC Ltd?

The Face Value of NMDC Ltd is 1.00.

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