Volume growth and capacity expansion to drive performance

Company
13 Dec 2023
5 Min read 
  • NMDC is expected to produce around 46mt of iron ore in FY24E.
  •  The company is undertaking capacity expansion projects to increase production capacity to 67mt by FY26-27E and eventually to 100mt by FY28-30E.
  •  Strong domestic demand and expansion plans of Tier-I steel manufacturers will drive iron ore demand.
  •  NMDC implemented a price hike in 3QFY24, benefiting from higher international prices and strong demand.
  •  NMDC trades at attractive valuations with a P/E of 9.5x and a P/B of 1.6x FY26E.
  •  The stock is recommended as a BUY with a target price of INR210.
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