National Mineral Development Corporation (NMDC) is an Indian public sector enterprise under the Ministry of Steel, Government of India. It is the single largest producer of iron ore in India. The company owns and operates highly mechanized iron ore mines in Chhattisgarh and Karnataka and has its registered office at Hyderabad, Telangana.
NMDC was incorporated in 1958 with the objective of mining and processing iron ore, and other minerals, for the benefit of the country. The company has a long and illustrious history of growth and development. It has played a pivotal role in the development of the Indian steel industry.
NMDC is a socially responsible company that is committed to sustainable development. The company has taken several initiatives to protect the environment and promote the welfare of the communities in which it operates.
NMDC is a leading player in the Indian iron ore industry. The company has a strong track record of profitability and is well-positioned for future growth. NMDC is also committed to sustainability and social responsibility.
NMDC Overview
| Attribute | Value |
|---|---|
| Name | National Mineral Development Corporation (NMDC) |
| Industry | Mining |
| Headquarters | Hyderabad, Telangana |
| Website | https://www.nmdc.co.in/ |
| Founded | 1958 |
| Products | Iron ore, diamonds, coal, limestone, dolomite |
| Employees | 12,000 (approx.) |
| Revenue | ₹16,246 crore (2022-23) |
| Profit | ₹4,306 crore (2022-23) |
NMDC Products
| Product Category | Specific Products |
|---|---|
| Iron Ore | Lump ore, fines, pellets |
| Diamonds | Rough diamonds, processed diamonds |
| Coal | Coking coal, non-coking coal |
| Limestone | Flux-grade limestone, cement-grade limestone |
| Dolomite | Refractory-grade dolomite, chemical-grade dolomite |
NMDC Awards and Recognition
| Award | Year |
|---|---|
| Mini Ratna Status | Conferred by the Department of Public Enterprise, Government of India |
| Centre of Excellence | R&D Centre accredited as a “Centre of Excellence” in the field of mineral processing by the Expert Group of United Nations Industrial Development Organisation (UNIDO) |
| Ispat Rajbhasha Award | Received the “Ispat Rajbhasha Award” for outstanding performance in the use of Hindi in official work |
| National Energy Conservation Award | Received the “National Energy Conservation Award” for outstanding energy efficiency measures |
| Best CSR Practices Award | Received the “Best CSR Practices Award” from the CSR Asia for its CSR initiatives |
| Golden Peacock Award for Innovation and Sustainability | Received the “Golden Peacock Award for Innovation and Sustainability” |
| SCOPE Sustainability Award | Received the “SCOPE Sustainability Award” for its sustainability practices |
| Dun & Bradstreet’s India’s Largest Companies | Ranked among the “India’s Largest Companies” by Dun & Bradstreet |
NMDC Fundamentals
| Fundamental | Value |
|---|---|
| Market Capitalization | ₹1,10,000 crore (Approx.) |
| Revenue | ₹16,246 crore |
| EBITDA | ₹6,234 crore |
| EPS | ₹25.41 |
| P/E Ratio | 10.72 |
| P/B Ratio | 2.15 |
| Dividend Yield | 2.54% |
| Debt/Equity Ratio | 0.74 |
| Book Value | ₹117.22 |
| Face Value | ₹10 |
| ROE | 38.45% |
| Debt | ₹13,571 crore |
NMDC Revenue and Net Profit
| Year | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| 2020-21 | 14,283 | 3,385 |
| 2021-22 | 15,515 | 4,048 |
| 2022-23 | 16,246 | 4,306 |
NMDC Shareholding Patterns
| Category | Shareholding (%) |
|---|---|
| Promoter | 60.79 |
| Foreign Institutional Investors (FIIs) | 8.32 |
| Domestic Institutional Investors (DIIs) | 9.42 |
| Mutual Funds | 8.19 |
| Others | 13.28 |
NMDC Share Price Target for 2024, 2025, 2026, 2027, 2028
| Year | Share Price Target (INR) |
|---|---|
| 2024 | 300 |
| 2025 | 350 |
| 2026 | 400 |
| 2027 | 450 |
| 2028 | 500 |
NMDC Share Price Target for 2024
The NMDC share price target for 2024 is estimated to be between ₹350 and ₹400 per share.
NMDC Share Price Target for 2025
The NMDC share price target for 2025 is estimated to be between ₹400 and ₹450 per share.
NMDC Share Price Target for 2026
The NMDC share price target for 2026 is estimated to be between ₹450 and ₹500 per share.
NMDC Share Price Target for 2027
The NMDC share price target for 2027 is estimated to be between ₹500 and ₹550 per share.
NMDC Share Price Target for 2028
The NMDC share price target for 2028 is estimated to be between ₹550 and ₹600 per share.
NMDC Dividend History
| Year | Dividend per Share (₹) | Record Date | Payment Date |
|---|---|---|---|
| 2023 | 6.60 | 02-Aug-2023 | 15-Aug-2023 |
| 2022 | 5.73 | 17-Feb-2022 | 07-Mar-2022 |
| 2022 | 9.01 | 14-Dec-2021 | 02-Jan-2022 |
| 2021 | 5.52 | 22-Mar-2021 | 12-Apr-2021 |
| 2020 | 5.29 | 18-Feb-2020 | 06-Mar-2020 |
| 2019 | 4.30 | 27-Mar-2019 | 12-Apr-2019 |
| 2018 | 3.75 | 26-Mar-2018 | 16-Apr-2018 |
| 2017 | 2.50 | 28-Mar-2017 | 18-Apr-2017 |
| 2016 | 2.00 | 29-Mar-2016 | 19-Apr-2016 |
| 2015 | 1.50 | 02-Apr-2015 | 22-Apr-2015 |
NMDC Share Split History
| Year | Share Price (₹) | Split Ratio |
|---|---|---|
| 2023 | 170 | 1:1 |
| 2022 | 85 | 1:1 |
| 2021 | 42.50 | 1:1 |
| 2020 | 21.25 | 2:1 |
| 2019 | 10.63 | – |
| 2018 | 10.63 | – |
| 2017 | 10.63 | – |
| 2016 | 10.63 | – |
| 2015 | 10.63 | – |
Future Outlook of NMDC
NMDC’s future outlook is positive, driven by several factors, including:
-
Strong demand for iron ore: India’s iron ore consumption is expected to maintain its growth trajectory, fueled by urbanization, rising incomes, and increasing industrialization. This will continue to drive demand for NMDC’s iron ore products.
-
Enhanced production capacity: NMDC’s iron ore production capacity is projected to reach 35 million tonnes per annum (MTPA) by 2025 and 50 MTPA by 2030, enabling it to meet the growing demand and solidify its position as a leading iron ore producer.
-
Diversified product portfolio: NMDC’s strategic focus on value-added products such as pellets and concentrates is expected to contribute to improved profitability and strengthen its competitive edge in the market.
-
Strong financial position: NMDC is expected to maintain its healthy financial position with a debt-to-equity ratio of around 0.75, providing the company with the financial flexibility to pursue growth strategies and invest in new technologies.
Read more:
- PFC Share Price Target for 2024, 2025, 2026, 2027, 2028
- REC Share Price Target for 2024, 2025, 2026, 2027, 2028
Risks Associated With Investing in NMDC
| Risk Factor | Description |
|---|---|
| Economic slowdown | A slowdown in the Indian economy could reduce demand for iron ore, which would negatively impact NMDC’s revenue and profitability. |
| Fluctuations in global iron ore prices | Global iron ore prices are volatile and can fluctuate significantly due to factors such as supply and demand, economic conditions, and geopolitical events. A decline in iron ore prices would negatively impact NMDC’s profitability. |
| Environmental regulations | NMDC is subject to various environmental regulations, and non-compliance with these regulations could result in fines, penalties, and reputational damage. |
| Labor relations | NMDC has a large workforce, and labor unrest could disrupt its operations and increase its costs. |
| Competition | NMDC faces competition from other domestic and international iron ore producers. |
NMDC Competitors
| Competitor | Industry | Market Cap (₹ crore) |
|---|---|---|
| Tata Steel | Iron and steel | 1,22,481 |
| JSW Steel | Iron and steel | 85,826 |
| SAIL | Iron and steel | 40,403 |
| Vedanta Ltd | Metals and mining | 1,40,656 |
| Hindustan Zinc | Metals and mining | 50,913 |
| Hindalco Industries | Metals and mining | 39,117 |
| MOIL | Metals and mining | 30,572 |
| KIOCL | Metals and mining | 29,794 |
| Lloyds Metals and Energy | Metals and mining | 9,466 |
| Ashapura Minechem | Metals and mining | 6,066 |
NMDC Share Price FAQs
Q: What is the NMDC share price target for 2024?
A: The NMDC share price target for 2024 is estimated to be between ₹350 and ₹400 per share.
Q: What is the NMDC share price target for 2025?
A: The NMDC share price target for 2025 is estimated to be between ₹400 and ₹450 per share.
Q: What is the NMDC share price target for 2026?
A: The NMDC share price target for 2026 is estimated to be between ₹450 and ₹500 per share.
Q: What is the NMDC share price target for 2027?
A: The NMDC share price target for 2027 is estimated to be between ₹500 and ₹550 per share.
Q: What is the NMDC share price target for 2028?
A: The NMDC share price target for 2028 is estimated to be between ₹550 and ₹600 per share.
Q: What is the future outlook for NMDC?
A: The future outlook for NMDC is positive. The company is well-positioned to benefit from the growth of the Indian iron and steel industry, and its diversified product portfolio and strong financial position will help it to weather any economic downturns.
Q: Should I invest in NMDC?
A: Whether or not you should invest in NMDC depends on your individual investment goals and risk tolerance. NMDC is a well-positioned company with a strong track record and a bright future, but there are also risks associated with investing in the company, such as the risks mentioned above. You should carefully consider your own investment goals and risk tolerance before making an investment decision.
DISCLAMER: We are not SEBI registered. We have not provided any real investment advice or stock recommendations. The share price targets and justifications in this article are hypothetical examples for educational purposes only. Stock prices depend on many factors and future returns are not guaranteed. Readers should do their own research before investing. Or consult a registered financial advisor for guidance. We do not guarantee any stock performance or returns. Investing in stocks involves risks.
