At 5.42% Dividend Yield Navratna Company To Trade Ex-Dividend This Week For 285%: Buy?

The single largest producer of iron ore in India is National Mineral Development Corporation (NMDC), a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India. The company has declared a final dividend of 285% for FY23 and the stock is going to trade ex-dividend this week on 31st August 2023.

NMDC Dividend

"In terms of Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from 1st September, 2023 to 7th September, 2023 (both days inclusive) for the purpose of ensuing 65th Annual General Meeting (AGM) of the Company and for payment of Final dividend for FY 2022-23 @ Rs. 2.85 per share. Further, the Record date for payment payment of Final dividend 2022-23 shall be 31st August, 2023 and the said dividend will be paid within 30 days from the date of the AGM," said NMDC in a stock exchange filing.

NMDC has announced an equity dividend of 660.00% at a face value of Rs 1, or Rs 6.6 per share, for the financial year ended March 2023. This generates a dividend yield of 5.41% at the current share price of Rs 121.95. The company has a solid track record of dividend declarations during the past five years. Since August 28, 2002, NMDC Ltd. has issued 43 dividends, according to statistics from Trendlyne.

NMDC Financials

The company reported a 13 per cent rise in its consolidated net profit to Rs 1,661.04 crore in Q1FY24 compared to a net profit of Rs 1,471.24 crore in the April-June period of FY23. Its total income surged to Rs 5,688.87 crore in June 2023 quarter from Rs 4,913.06 crore in the corresponding period a year-ago. In addition, its total expenses increased to Rs 3,476.55 crore from Rs 2,968.94 crore in the same quarter of previous financial year. The company reported its highest-ever iron ore production and sales in June, totalling 3.48 million tonnes (MnT) and 4.1 MnT, respectively.

NMDC Share Price Target

"At present, NMDC is trading at 122, exhibiting a robust upward momentum and finding substantial support at the 118 mark. Notably, the stock has demonstrated a commendable performance by maintaining its position above key moving averages, namely the 20-50-100-200 EMA indicators. Reinforcing this positive outlook is the Relative Strength Index (RSI), which has recently undergone a favorable crossover and is presently situated at 65," said Ameya Ranadive, Sr Equity and Derivatives Analyst · Choice International Limited.

"The confluence of these technical factors suggests a promising outlook for NMDC. Should the stock succeed in sustaining its position above the critical support level of 118, it holds the potential to attain new 52-week highs in the range of 134-137. This projection is underpinned by the prevailing uptrend, well-supported moving averages, and the encouraging RSI dynamics," Ameya Ranadive further stated.

Disclaimer

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