Rs 1.50 Dividend By Navratna PSU Company: 17th September Record Date; Buy?

The largest producer of iron ore in India is National Mineral Development Corporation (NMDC), a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India. It owns and runs automated iron ore mines in Chhattisgarh and Karnataka and has its registered office in Hyderabad, Telangana. NMDC is regarded as one of the world's most affordable producers of iron ore. Additionally, it runs Panna, Madhya Pradesh's only mechanised diamond mine in the country.

NMDC Dividend

The Board of Directors has recommended a final dividend for FY 2023-24 @ Rs 1.50 per share in the month of May 2024, subject to the approval of shareholders in the ensuing AGM.

"In terms of Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members and Share Transfer Books of the Company will remain closed from 18th September, 2024 to 24th September, 2024 (both days inclusive) for the purpose of ensuing 66th Annual General Meeting (AGM) of the Company and for payment of Final dividend for FY 2023-24 @ Rs.1.50 per share. Further, the Record date for payment of Final dividend 2023-24 shall be 17th September, 2024 and the said dividend will be paid within 30 days from the date of the AGM," said the company in a stock exchange filing.

NMDC Financials

For the June 2024 quarter, the company posted a consolidated net profit of Rs 1,970.8 crore, up 19% from Rs 1,652.2 crore in the corresponding period last year. In Q1FY25, NMDC's total revenue from operations remained constant at Rs 5,414.2 crore. Net profit increased by 20% to Rs 1,984 crore on a stand-alone basis, but revenue from operations dropped to Rs 5,377.8 crore from Rs 5,394.7 crore in the first quarter of the previous fiscal. Net profit plunged by 35.8% year over year to Rs 1,462.03 crore when considered on a standalone basis.

NMDC Share Price Target

KKunal V Parar - VP of Technical Research and Algo at Choice Broking said, "On the daily chart, the stock has taken support at its previous bottom, indicating a potential bounce-back. Additionally, the stock has broken out of its recent range-bound movement, where it was consolidating for more than four days, signaling a likely upside move."

"In a smaller time frame, the stock has also broken out of a Downward Falling Channel pattern, further confirming a positive trend. Moreover, the daily momentum indicator RSI has formed a Positive Divergence, suggesting improving market sentiment. Considering this technical setup, we anticipate a strong upside move in the stock, with a potential target of 234 to 250, while maintaining a strict stop-loss at 200," the analyst further added.

Disclaimer

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