Buy Large Cap Navratna PSU Stock For 38% Return, Target Price Rs 155: Motilal Oswal

Motilal Oswal, in its latest report, has recommended investors to buy NMDC Ltd with a target price of Rs 155 apiece. Last trading price of NMDC is Rs 112.00 on BSE with intraday fall of 1.15%. If you buy NMDC Ltd share now at last trading price, you can get potential return of 38%. It is a Navratna PSU company. Check details below:

1. NMDC Ltd Stock Performance & Return

Last trading price of NMDC is Rs 112.00 apiece. The stock's 52-week high is Rs 143.13 and 52-week low is Rs 81.27 apiece, respectively. The company has a market capitalisation of Rs 32,822.79 crore. The stock declined 10% in last 1-month, gave a return of over 13% in last 6-months, 2% in last 1-year, and 11% in last 2-years. It rallied 35% in last 3-years.

2. NMDC Ltd Valuation

According to Motilal Oswal, "We reiterate our BUY rating on the stock with a target price of INR155 (5x EV/EBITDA). We believe NMDC is well placed to capitalize on the growth opportunity ahead. With export of steel and pellets picking up pace and no drag from the steel business, we expect NMDC to continue its volume growth journey."

NMDC has attractive fundamental setups with robust steel demand, no export duty, and no overhang from the steel business, added Oswal.

3. NMDC Ltd About

National Mineral Development Corporation (NMDC), a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India is the single largest producer of iron ore in India. It owns and operates highly mechanized iron ore mines in Chhattisgarh and Karnataka and has its registered office at Hyderabad,Telangana.

NMDC is considered to be one of the low-cost producers of iron ore in the world. It also operates the only mechanized diamond mine in India at Panna, Madhya Pradesh. NMDC is also setting up a 3 MT integrated steel plant at Nagarnar, Chhattisgarh, according to its official website. 

 

 

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 check with certified experts before taking any investment decision.