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INVESTMENT INSIGHTS

Check Before You Invest : NMDC Ltd

BSE: 526371 NSE: NMDC ISIN: INE584A01023
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does NMDC Ltd belong to?
NMDC Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is NMDC Ltd a good quality company?
NMDC Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is NMDC Ltd undervalued or overvalued?
NMDC Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is NMDC Ltd a good buy now?
NMDC Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of NMDC Ltd?
NMDC Ltd revenue growth is 12.2% for FY-2025 , which is below its 5 year CAGR of 15.4% , indicating slower growth.
Q.2 Gross Profit margin of NMDC Ltd?
NMDC Ltd Gross profit margin which is the profit after deduction of direct costs, is 40% for FY-2025 , which is below its 5 year median of 40.3% , indicating decreasing margins.
Q.3 Operating Profit Margin of NMDC Ltd?
NMDC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.09% for FY-2025 , which is below its 5 year median of 34.27% indicating decreasing margins.
Q.4 Net Profit Margin of NMDC Ltd?
NMDC Ltd Net Profit Margin is 27.36% for FY-2025 , is below with its 5 year median of 31.35%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 40 40.3
Operating Profit Margin 34.09 34.27
Net Profit Margin 27.36 31.35
Q.5 Return on Asset of NMDC Ltd?
NMDC Ltd Return on Asset is 14.4%, which is below its 5 year historical median of 15.79%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of NMDC Ltd?
NMDC Ltd Return on equity is 23.63% for FY-2025 , which is in line with its historical median of 23.63%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of NMDC Ltd?
NMDC Ltd Return on capital employed is 29.84% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of NMDC Ltd?
NMDC Ltd Cash conversion cycle is 118 days, above its historical median of 102 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.53 0.53
ROE 23.63 23.63
ROCE 29.84 29.88
Cash Conversion Cycle 118 days 102 days
Q.9 Debt to Equity ratio of NMDC Ltd?
NMDC Ltd Debt-to-Equity ratio is 0.13 , which is above with the industry average of 0.1 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of NMDC Ltd?
NMDC Ltd Debt to cash flow from operations is 1.99 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NMDC Ltd?
Promoters hold 60.79% of the NMDC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of NMDC Ltd vs industry peers?
NMDC Ltd revenue CAGR is 15.36% , compared to the industry median CAGR of 15.36% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 23,905.5 21,307.9
Gross Profit 9,562.4 9,129.8
Operating Profit 8,149 8,149
Net Profit 6,540 6,247
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.53 0.53
ROE 23.63 23.63
ROCE 29.84 29.88
Cash Conversion Cycle (days) 117.58 102

Valuation & price assessment

Q.1 Stock return of NMDC Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 9.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.8% 13.3% 32.2% 36.4%
Q.3 Valuation ratios of NMDC Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10.93 10.64 15.25
Price to Book 2.21 1.11 1.98
Price to Sales 2.72 3.01 5.50
EV to EBITDA 6.66 5.48 7.70

Check more companies

1. Lloyds Metals&Energy
2. National Aluminium
3. NMDC
4. SAIL
5. Jindal Stainless
6. APL Apollo Tubes
7. Hindustan Copper
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