Stock To Buy: Buy Navratna PSU Stock For Gain, TP Rs 190: Motilal Oswal Recommends

Motilal Oswal has recommended investors to buy Navratna public sector undertaking (PSU) NMDC share with target price of Rs 190 per share. Current market price of NMDC share BSE is Rs 170.10 per share with intraday gain of 0.29%. If you buy NMDC shares now at current market price of Rs 170.10 apiece, you can fetch potential return of 11.70%. NMDC shares offered return of 62% in last 6-months and soared 123% in last 3-years. Check details below:

NMDC Stock Performance & Return: The stock's 52-week high price is Rs 177.75 per share and 52-week low price is Rs 103.75 per share, respectively. The company has a market capitalisation of Rs 49,849.61 crore. NMDC shares soared 41% in last 3-months, gained 35% year-to-date, rose 46% in last 1-year, and jumped 54% in last 2-years. In last 5-years, NMDC shares BSE soared 118%.

NMDC Valuation: According to Motilal Oswal, in its brokerage report dated November 17, 2023, "NMDC is on track to exceed 50mt of volumes in FY25. Considering the improved outlook on volumes, global iron ore prices, and strong demand, we have increased our revenue/EBITDA estimates by 11%/13% for FY25. NMDC trades at FY25E EV/EBITDA of 5.2x and FY25E P/B of 1.7x. We reiterate our BUY rating on NMDC with a revised TP of INR190."

NMDC Financials: India's largest iron ore producer, NMDC declared a jump of 15.7% in its consolidated net profit for the quarter ended September 30, 2023 amid healthy demand. Its earnings surged to Rs 1024.86 crore for July-September period from Rs 885.65 crore declared in the corresponding period of last year. Sequentially, the PSU firm announced a fall of 38% in its net profit from Rs 1661.04 crore declared in Q1. Its revenue from operations soared 20% to Rs 4013.98 crore for the September quarter from Rs 3328.5 crore declared an year ago.

About: NMDC, a government-owned company, is India's largest iron ore producer. NMDC is operating four iron ore mechanised mines viz., Bailadila Iron Ore Mines - Kirandul Complex (Dep-14, 14 NMZ, 11B and 11C), Bailadila Iron Ore Mine - Bacheli Complex (Dep-5,10 and 11A) in Chhattisgarh, Donimalai Iron Ore Mine and Kumaraswamy Iron Ore Mine in Karnataka. The company also produces and sells diamonds, sponge iron, and wind power.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.