NMDC Stock: NMDC i.e. National Mineral Development Corporation is a wholly owned government company under the administrative control of the Ministry of Steel. The cornerstone of India’s mining landscape since 1958, has not only emerged as one of the most profitable Navratna companies but has also proven to be a wealth generator for investors. As we delve into the scope of NMDC stock journey. Let us know if this is a golden opportunity for your investment portfolio.
Weekly chart of NMDC stock
NMDC stock has been performing brilliantly, witnessing a staggering growth of over 150% in the last three years.
From trading at around Rs 60 per share in the year 2020, this stock has crossed the mark of Rs 160 per share in the year 2023. Has broken past resistance points and created an attractive growth story for investors.
Vision and Mission of NMDC Company
NMDC aims to be a global, environment-friendly mining organization and quality steel producer with an emphasis on social development. Their mission includes maintaining leadership as India’s largest iron ore producer, expanding the business nationally and internationally and ensuring stakeholder satisfaction.
Financial position of NMDC company
NMDC reported 13% rise in consolidated net profit to ₹1,661.04 crore in Q1FY24 due to increase in income. Total income increased to Rs 568887 crore from Rs 491,306 crore in the same period a year ago. However, expenditure also increased to Rs 3476.55 crore compared to Rs 296894 crore a year ago. EBITDA of Iron Ore segment stood at Rs 2106 crore, showing strong growth. Despite losses in the pellets, other minerals and services sectors, NMDC’s financial position shows resilience and a positive trajectory.
Additional information about NMDC
- Almost debt-free status: With a prudent debt reduction strategy, NMDC has achieved almost debt-free status. This remarkable achievement not only enhances the financial health of the company but also positions it favorably in the market.
- Return on Equity (ROE) Track Record: NMDC boasts of an impressive Return on Equity (ROE) track record, with consistent performance over the last three years. The ROE of 27.9% reflects the company’s efficient use of equity capital to generate profits, demonstrating its operational excellence and value creation for shareholders.
- Healthy Dividend Payout: By maintaining a healthy dividend payout of 38.9%, NMDC recognizes the importance of rewarding its shareholders. Consistent dividend distributions underline the company’s commitment to delivering value and sharing its success with investors.
NMDC’s impressive growth trajectory and the driving factors behind its success present an attractive investment prospect. However, investors should engage in extensive research, ensuring that their decisions align with personal financial objectives so that they can make informed choices.
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