NMDC Bonus Shares of 2:1 - To Be Credited By 10th January 2025; BUY Navratna PSU Stock?

The largest manufacturer of iron ore in India is the National Mineral Development Corporation (NMDC), a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India. It has its registered office in Hyderabad, Telangana, and manages and owns highly mechanised iron ore mines in Chhattisgarh and Karnataka. NMDC is regarded as one of the world's low-cost iron ore producers. Additionally, it runs India's sole automated diamond mine near Panna, Madhya Pradesh.

NMDC Bonus Shares

The Board of Directors considered and approved "Issuance of Bonus Shares to the shareholders of the Company in the ratio of 2:1, i.e. 2 (two) Bonus Equity Shares of face value Rs 1/- each fully paid up; for every 1 (One) existing equity share of face value of Rs 1/- each fully paid up, to the eligible members of the Company as on the record date, subject to the approval of the Shareholders of the Company," said the company in a stock exchange filing.

586,12,11,700 equity shares of face value Rs 1/- each are the total number of securities proposed to be issued as a part of bonus shares by NMDC and the record date for the purpose of the same will be announced in due course of time.

The estimated date by which such bonus shares would be credited/dispatched is within two months from the date of approval of the Board i.e. on or before 10th January 2025.

NMDC Financials

According to NMDC Steel, a spike in expenses caused its loss to increase to Rs 595.37 crore in the September 2024 quarter. In an exchange filing, the company stated that it had recorded a loss of Rs 131.10 crore during the same quarter of the previous fiscal year. The company's overall income climbed from Rs 290.27 crore in Q2FY24 to Rs 1,535.46 crore in Q2FY25. However, during the second quarter of the current fiscal year, NMDC's expenses increased from Rs 464.93 crore in the year-ago quarter to Rs 2,364.39 crore in the quarter under review.

NMDC Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said "The stock has been trading within a symmetrical triangle pattern on the daily chart, indicating a consolidation phase. This formation does not suggest a clear directional move until a breakout occurs on either side. Additionally, the stock is trading below its 200-day moving average, which signals a bearish bias in the near term. On the hourly chart, the stock is trading within a downward-sloping channel, further supporting a downside move in the short term."

"However, the daily RSI momentum indicator is testing support along an upward-sloping trendline, which could signal potential bullish momentum if it holds, suggesting some positive divergence. Given the current technical structure, we expect the stock to remain range-bound within the symmetrical triangle pattern, with resistance at 250 and support at 210, until a breakout materializes in either direction," the analyst further added.

Disclaimer

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