NMDC Share Price Today: Navratna PSU Recovers From Day’s Low After Q1 Result | Buy, Sell or Hold?

NMDC Share Price Today: Shares of NMDC Limited recovered from the day's low after the Navratna PSU stock fell nearly 3% during Monday's trading session. The state-owned NMDC had reported a 2% increase in consolidated net profit to Rs 2007 crore in Q1FY27.

NMDC stock was trading 0.57% higher at Rs 84.86 per share on BSE with a market capitalisation of Rs 74,607.36 crore at 2:40 pm on Monday, August 17. The stock had touched an intraday high of Rs 85.04 per share and an intraday low of Rs 81.05 per share.

NMDC Share Price Outlook

The iron ore producer's net profit was broadly in line with expectations. According to Motilal Oswal, NMDC's reported revenue declined on a sequential basis but came in line with expectations.

"NMDC reported healthy earnings during the quarter, supported by healthy ASPs, which offset muted QoQ volumes. Going forward, management has guided for production volume to increase to ~60mt in FY27, fueled by an increase in the EC limit and a new mine under the JV. We largely maintain our estimates for FY27/28 and expect volumes and prices to remain elevated, in line with strong demand from steel makers," noted the brokerage in its report.

Its strong capex pipeline over various evacuation and capacity enhancement projects will help in improving the product mix and increasing production capacity to 100 mt by FY30. The company is also planning to venture into business diversification through coking/non-coking coal mines, critical minerals, and rare earth elements.

NMDC Share Price Recommendation

The brokerage maintained a 'Buy' rating with a target price of Rs 98 per share, indicating a 16% upside in valuation. "The stock trades at 5.4x EV/EBITDA and 1.6x P/BV on FY28 estimate. We reiterate our BUY rating on NMDC with a TP of INR98 (based on 6.5x EV/EBITDA on FY28 estimate)," stated the brokerage firm in its report.

NMDC Share Price Trend

The stock was trading 0.55% higher at Rs 84.84 per share on BSE with a market capitalisation of Rs 74,589.78 crore at 2:55 pm on Monday. The stock had touched an intraday high of Rs 85.05 per share and an intraday low of Rs 81.05 per share. The stock has a return on equity (ROE) of 26.46%. Its share price value has surged around 2% in one month and around 22% in one year. The stock has delivered close to 118% return in three years.

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