Latest News
-
Hindustan Zinc to Persist in Demerger Discussions with Government, Says CEO -
8 Tata Group Stocks To Buy That Will Pay Dividends Soon, Q4 In Focus; Are You Invested? -
Gold Prices In US: Yellow Metal Rates Surge Amid Escalating Tensions In Middle East; Hit Record High -
Jio Financial Services Sees 80% YoY Decline In Q4 Net Profit, Net Interest Income Dives 70% -
Rs 25/Share Dividend Payout: Multibagger Small Cap Tata Stock Declares 52.6% Jump In Q4 PAT -
Wipro Q4 Results: Cons PAT Up 5% QoQ To Rs 2,834.6 Crore, Revenue Guidance Weaker Than Estimates -
How To Apply Your Voter ID Card Online: Quick Guide For Indian Citizens -
Emmforce Autotech IPO Debut April 23: Issue Size, Price Band, Check Details? -
1:5 Stock Split: PSU Bank Fixes Record Date For First Ever Stock Split; Buy For Rs 650-680 Targets -
Closing Bell: Market Stages Smart Recovery, Sensex & Nifty Snap 4-Day Losing Streak Led By HDFC Bank
Buy NMDC For 42% Upside: Motilal Oswal
The markets seem to be recovering from the sell off as there are hopes of ceasefire surfacing. And in trade on March 10, 2022 all of the sectoral indices that even take into count Nifty Bank is also in the green.
So, even as the metals may lose steam if the commodities prices come lower on account of the receding global tensions, Motilal Oswal suggested to buy this metal counter for gains.
Motilal Oswal bullish on NMDC; Gives it a ‘Buy’
The company is of the view that for NMDC increasing iron ore prices as well as volume shall augur well for the company. NMDC has announced a hike in iron ore prices by Rs. 400/t for both fines and lumps.
Commissioning of the company's steel plant has commenced and production of hot metal production is likely to begin in 1HFy23. "We believe the demerger of the Nagarnar Iron and Steel Company (NISP) will
be the key trigger for the stock", claims the brokerage.
Valuation remains inexpensive; retain BUY with 42% potential upside
"We believe that domestic iron ore prices should correct in FY23E, as China islikely to curb steel production. This will result in lower international iron ore prices too. Further, increasing supplies from the auctioned iron ore mines should lead to lower prices in FY23E. However, we expect NMDC to increase its production and sales volume by 5%.NMDC is currently trading at 2.4x/2.9x our FY22/23 EV/EBITDA for the core mining business.The brokerage's maintains it target for the stock at Rs. 216 per share.
Disclaimer
The stock is taken from the brokerage report of Motilal Oswal. Note the market is currently highly volatile and hence take the call as per your own discretion and risk profile.
