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NMDC Ltd. Stock Analysis

Large Cap
Evaluated by 11266 users | BSE: 526371 | NSE: NMDC |
Mining & Minerals

NMDC is a Navratna PSE under Ministry of Steel, Govt. of India is the single largest producer of iron ore in India owns and operates highly merchandized iron ore mines in CG & Karnataka. NMDC is considered to be one of the low-cost producers of iron...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
NMDC Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 0023.04%22.06%20.64%8.64%9.6%15.71%18.1%13.34%
Value Creation Index NANA0.530.470.38-0.42-0.36NANANA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 0010,70412,05812,3566,4568,82811,61512,15311,699
Y-o-Y Gr. Rt.-NANA12.7%2.5%-47.8%36.8%31.6%4.6%-3.7%
Adjusted EPS (Rs.) 0015.9715.9916.26.758.0411.7215.0911.89
Y-o-Y Gr. Rt.-NANA0.1%1.3%-58.3%19.1%45.8%28.8%-21.2%
Book Value per Share (Rs.) 0069.475.5281.3773.671.3777.1885.0690.38
Adjusted Net Profit 006,3316,3386,4252,6772,5433,7074,6193,641
Net Op. Cash Flow (Rs. Cr.) 003,0973,7343,9992,5022,1093,3764,0022,126
Debt to Cash Flow from Ops 000000.600.150.090.27
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
NMDC Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA-1.1%9.8%-3.7%
Adjusted EPS NA-6%13.9%-21.2%
Book Value per Share 02.18.26.3
Share Price -7% 1% -8.4% -6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 0023.0122.0620.658.719.8315.7718.3113.56
Operating Profit Margin (%) 0068.8564.3962.8442.5140.7249.9656.9951.3
Net Profit Margin (%) 0059.1952.9152.4443.9129.2531.8738.1631.36
Debt to Equity 000000.0500.020.010.02
Working Capital Days 000466475842535381379434
Cash Conversion Cycle 00042497237434762
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 69.65%
Institutions 24.89%
Non-Institutions 5.36%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of NMDC Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that NMDC Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of NMDC Ltd.'s performance infers:

NMDC Ltd. earnings have declined by -6%, whereas share price has appreciated 1% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of NMDC Ltd. share prices over the last 10 years. Here is what we found out:

NMDC Ltd. share price has appreciated -9% annually over the past ten years.

NMDC is a Navratna PSE under Ministry of Steel, Govt. of India is the single largest producer of iron ore in India owns and operates highly merchandized iron ore mines in CG & Karnataka. NMDC is considered to be one of the low-cost producers of iron ore in the world. It also operates the only merchandized diamond mine in India at Panna, MP. The company is diversifying into steel making and has undertaken several capital intensive projects to modernise

NMDC is a Navratna PSE under Ministry of Steel, Govt. of India is the single largest producer of iron ore in India owns and operates highly merchandized iron ore mines in CG & Karnataka. NMDC is considered to be one of the low-cost producers of iron ore in the world. It also operates the only merchandized diamond mine in India at Panna, MP. The company is diversifying into steel making and has undertaken several capital intensive projects to modernise and increase capacities to retain its domestic leadership and has also forayed overseas successfully.

Business area of the company

NMDC is engaged in mining of iron ore which is crucial for the steel industry. The core business of our operations produces mineral resources, jobs and infrastructure. The resources company develop create a global value chain that includes exploration, development, extraction, processing, transportation, marketing and logistics, through which company generate economic value.

Products

  • Iron Ore
  • Baila ROM
  • Baila lump
  • DR CLO
  • Baila Fine
  • Doni lump
  • Kumaraswamy Lump
  • 10-20 mm sized Kumaraswamy Lump
  • Doni Fines 
  • Kumaraswamy Fine
  • Slimes

Awards

  • NMDC wins the Golden Peacock Corporate Ethics Award 2017.
  • NMDC Conferred with ET Now CSR Leadership Award in 2018
  • NMDC bags the prestigious S&P PLATTS Global Metals Award 2018 under CSR category.
  • NMDC received Best Financial Performing PSE Award in 2018
  • NMDC Awarded as Best PSE for Implementation of Rajbhasha
  • NMDC Bagged prestigious Renewable Energy Award on September 10, 2018
  • NMDC Wins Top Accolades at 9th PRCI Excellence Awards 2019
  • Shri P.K. Satpathy, Director (Production), NMDC Ltd felicitated as best Director on May 13, 2019
  • NMDC bags prestigious standing conference of public enterprises (scope) Excellence Award on August 3, 2019.
  • NMDC - Best Supporting Organization to Quality Circle Movement
  • NMDC Received coveted ‘Rajbhasha Kirti’ Award
  • NMDC Receives Five Prestigious PRSI Awards on December 16, 2019
  • NMDC has bagged Eight Corporate communication Excellence Awards 2020 in a grand ceremony organised during the 14th global communication conclave by Public Relations Council of India (PRCI) at Bangalore.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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