NMDC Ltd
Ticker: NMDC
Decent
68/100
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Investing Reference
Price
75.79
Market Cap
66633.19
Debt/Equity
0.1439
ROE %
23.586
PB
2.2430
Promoter %
60.794
Pledge %
0.000
1Y Rev Growth %
12.436
5Y Rev Growth %
15.527
NP Margin %
25.613
NP Margin 5Y Avg %
30.783
Trading Reference
1M Return %
-1.288
6M Return %
16.171
1Y Return %
2.479
% Away 52W High
9.289
% Away 52W Low
27.314
Daily Volume
12203341
Investment Verdict
Buy
Score 83/100 · Position size: 40%
Long-term fundamentals are strong. Suitable for investors with a 1–3+ year horizon.
Trading Verdict
Avoid
Score 51/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
Summary
NMDC Ltd shows strong growth potential driven by rising iron ore demand.
✅ Positives
- Strong production capacity and low cost structure
- Increasing global iron ore prices
- Strategic expansion plans in mineral exploration
⚠️ Negatives
- Dependence on iron ore market fluctuations
- Regulatory challenges in mining sector
- Potential environmental compliance costs
Verdict
Positive outlook with growth opportunities ahead.
Recommendation: Consider buying for long-term gains.
Upside Probability: 25% | Downside Probability: 15%
Last generated: 30/10/2025
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Business Overview
NMDC Ltd is a leading Indian mining company, primarily engaged in the exploration and production of iron ore and other minerals. Catering to the growing demand in the steel and construction sectors, NMDC plays a crucial role in India's infrastructure development. With a strong focus on sustainability and innovation, the company is committed to enhancing its operational efficiency and environmental responsibility. NMDC's strategic initiatives ensure a steady supply of essential minerals, making it a vital player in the Indian economy.
- Leading iron ore producer in India
- Supports steel and construction industries
- Focus on sustainability and innovation
- Enhances operational efficiency
- Contributes to India's infrastructure development
Investment Thesis
NMDC Ltd stands out as a solid investment choice due to its credible promoter group and robust governance. The company's foray into digital services presents significant growth potential, while its current valuation remains attractive compared to peers, making it a compelling opportunity for investors seeking long-term gains.
- Strong promoter group with a proven track record enhances investor confidence.
- Digital services expansion offers a substantial growth runway in a competitive market.
- Attractive valuation metrics relative to industry peers signal potential upside.
- Robust fundamentals support sustainable growth and profitability.
- Strategic initiatives align with India's increasing demand for minerals and resources.
Opportunity vs Risk
Opportunities
- Strong demand for iron ore
- Government infrastructure projects boost
- Potential for dividend growth
- Expansion into new markets
Risks ⚠️
- Volatility in iron ore prices
- Regulatory changes impact operations
- Environmental concerns and compliance
- Global economic slowdown risks
Peer Perspective
NMDC Ltd trades at a discount to peers like Hindustan Zinc and Tata Steel, reflecting concerns over margin stability. A sustained improvement in iron ore prices could trigger a rerating for NMDC.
Future Outlook
NMDC Ltd is well-positioned for growth in the mining sector, provided it maintains strong execution and cost control measures. Continued demand for iron ore could enhance its market position in the coming years.
AI FAQs for Retail Users
- Q: What does NMDC Ltd do?A: NMDC Ltd is an Indian mining company primarily engaged in the exploration and production of iron ore.
- Q: Is NMDC a government-owned company?A: Yes, NMDC Ltd is a public sector enterprise, with the Government of India holding a significant stake.
- Q: How has NMDC performed recently?A: Recent performance can vary; check financial reports and market trends for the latest updates.
- Q: What are the main risks of investing in NMDC?A: Risks include fluctuations in commodity prices, regulatory changes, and operational challenges in mining.
- Q: Can I invest in NMDC through mutual funds?A: Yes, some mutual funds may include NMDC in their portfolios; check specific fund details.
📊 Stock Investment Checklist (100 Points)
NMDC Ltd • Updated: 2025-09-17 05:52:26
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10BusinessHighThe mining sector is essential for infrastructure development, but NMDC faces competition and regulatory challenges.
-
10GrowthHighRevenue growth has been inconsistent due to fluctuating iron ore prices.
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10ProfitabilityHighROE and ROCE are decent, but cash flow has been volatile.
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8ValuationHighP/E and P/B ratios are higher than industry averages, indicating potential overvaluation.
-
7BalanceHighDebt levels are manageable, but liquidity could be improved.
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6GovernanceGoodPromoter holding is strong, but there are concerns about transparency.
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5DriversGoodGrowth drivers are limited, with execution risks in expanding operations.
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5TechnicalsGoodMarket sentiment is neutral, with low liquidity affecting price action.
Final Score & Verdict
Score 68 / 100
• Decent
NMDC Ltd shows potential but faces challenges in growth consistency and valuation metrics. Investors should proceed with caution.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 65/100
- Governance: 60/100
- Market Confidence: 68/100