Dividend Likely To Be Recommended: Mining PSU’s Shareholders Set To Be Rewarded

Mining sector public sector undertaking NMDC Ltd issued its BSE filing on May 10, 2024 informing shareholders about its upcoming meeting of board of directors to consider financial results and final dividend. Last trading price of NMDC Ltd share on BSE is Rs 255.30 per share with intraday gain of 0.89%. Brokerage firm LKP Research has issued buy call for one-year with target price of Rs 297 apiece. NMDC shares already offered 51% return in last 6-months and 135% in last 1-year. Below are details that you should not miss:

NMDC Ltd To Consider Financial Results, Dividend: As per the BSE filing of the company dated May 10, "a Meeting of Board of Directors of the Company is scheduled to be held on Tuesday, 21st May 2024 inter-alia, to consider, approve and take on record the Audited Financial Results (Standalone and Consolidated) of the Company for the quarter and Financial Year ended 31st March 2024 and recommendation of Final Dividend for FY 2023-24, if any."

NMDC Share Performance & Return: The 52-week high price of NMDC Ltd share on BSE is Rs 273.10 per share (as on 6/05/2024) and 52-week low price is Rs 103.75 per share (as on 19/05/2023), respectively. The company's market capitalisation is Rs 74,818.37 crore. NMDC has a PE of 11.60 and ROE of 26.65. NMDC shares declined 5% in last 1-week, zoomed 21% in last 3-months, rallied over 121% in last 2-years, and jumped 234% in last 5-years.

LKP Research On NMDC Ltd Share: The brokerage house recommended traders to buy NMDC share and listed reasons that will benefit the PSU. It said, "we Initiate coverage on NMDC based on the following factors: 1) NMDC stands to capitalize on rising steel demand as India's steel industry doubles by 2030. 2) This PSE is poised to be a key beneficiary of a potential repeat of the 2003-2007 capex boom, given the resemblance of the current economic landscape to that of 2003-2008. 3) Aggressive mine capacity expansion to meet upcoming demand. 4) Abundant availability of high-quality ores for the next 40 years."

NMDC Ltd Dividend History: The PSU announced 44 dividends since August 28, 2002. In last 1-year, NMDC announced an equity dividend amounting to Rs 8.60 per share. At the current share price of Rs 255.30, NMDC Ltd.'s dividend yield is 3.37%.

NMDC Q3 Results: The company declared a surge of 62.6% in its consolidated net profit for the quarter ended December 2023 as against the net profit in the corresponding quarter, amid robust domestic steel demand. The company's earnings jumped to Rs 1,469.73 crore for the three periods ended December 2023 as compared to Rs 903.89 crore announced in the similar period last year. Sequentially, the PSU's profit climbed 43% from Rs 1024.86 crore in the preceding quarter. NMDC's consolidated revenue from operations soared 45% Year-on-Year to Rs 5409.90 crore and rallied 34.7% QoQ.

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 LKP Research. 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.