NMDC Shares Under Pressure After Reporting 5% YoY Increase In Net Profit; Should You Buy, Sell Or Hold?

NMDC Share Price: Shares of National Mineral Development Corporation (NMDC) were trading under pressure on Wednesday, a day after the state-run mining major reported a 5% year-on-year increase in its net profit to Rs 1483 crore.

NMDC shares were trading 1.5% lower at Rs 71.67 per share on BSE on Wednesday. Its market capitalisation stood at Rs 62,879.08 crore. The company scrip had touched a 52-week high mark of Rs 91.7 per share on BSE on 20 June 2024.

NMDC reported a consolidated net profit of Rs 1,483.18 crore during the quarter ending in March. The PSU mineral firm had declared a final dividend of Re 1 for financial yea 2024-25. As the public sector minor had announced its Q4 result, should you buy, sell or hold? Let's know what analysts are saying.

NMDC Q4 Result: Analysts Review

NMDC's quarterly result was in line with estimate supported by healthy volumes and NSR growth, noted Motilal Oswal in its report on Wednesday. Company's iron ore production stood at 13.3 metric tons and its sales increased marginally on a year-on-year basis.

NMDC's EBITDA declined on a sequential as well as on a year-on-year basis due to other higher prices. The brokerage retained its 'Buy' rating and is likely to revise its target price after NMDC's conference call scheduled for Wednesday.

NMDC Stock Price Recommendation

While Motilal Oswal retained its 'Buy' rating for the NMDC Stock, it is likely to issue its updated target price for the NMDC after the company's conference call. NMDC stock is likely to see a 30% upside, stated Antique Stock Brokerage and fixed its target price at Rs 94 apiece.

Kotak Institutional Equities gave a 'Sell' rating for NMDC stock, indicating a downside of 24%.

NMDC Q4 Result

NMDC's net profit increased 5% annually to Rs 1483.18 crore during the March quarter of financial year 2024-25 against Rs 1,415.62 crore reported during the same quarter of financial year 2024-25. Its consolidated net profit stood at Rs 1,896.66 crore during the fourth quarter of the financial year 2023-24.

NMDC reported a marginal increase in its net sales to 126.68 LT during the quarter under review. Its revenue from operations stood at Rs 6953 crore during the fourth quarter. The mineral company's EBITDA declined marginally to Rs 2538 crore. NMDC's iron ore production increased marginally to Rs 133.07 crore against Rs 132.40 crore

NMDC Dividend

The company had announced a 100% dividend for its shareholders for financial year 2024-25, compared to Re 1 of face value. "The Board of Directors recommended the payment of Final Dividend of ₹ 1/- (Rupee One only) per share on the face value of ₹1/- (Rupee One only) each for the financial year 2024-25, subject to approval of the shareholders in the ensuing Annual General Meeting (AGM). This is in addition to the Interim Dividend of ₹2.30/- per equity share already declared and paid during the financial year. The said Final Dividend, if declared at the ensuing AGM, will be paid to the shareholders within 30 days from the date of AGM," read NMDC's BSE filing released on Tuesday.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.