Stock To Buy, Oct 12: PL Suggests Govt-Owned Navratna Mining Stock, TP Rs 165

Prabhudas Lilladher has recommended investors to buy Navratna public sector undertaking (PSU), with target price of Rs 165 per share. Current market price of NMDC stock on BSE is Rs 158.75 per share, with intraday gain of 5.69%. NMDC Ltd share witnessed a rally of 16% in last 1-month and soared 42% in last 3-months.

It is worth mentioning here that mining companies shares such as NMDC, MOIL and GMDC are soaring today with gains between 5% to around 13%. The rally in these shares occurred today because cabinet has given its nod to royalty rates for mining of three key and strategic minerals like niobium, lithium, and rare earth elements. Now the royalty rates have been fixed in the range of 1%-3% of their selling prices.

Also, cabinet has decided to fix royalty rates lower because these minerals have gained huge significance in India's economic advancement and country's security. These minerals have gained importance as India move towards the direction of carbon neutrality targets. Check details below:

NMDC Stock Outlook & Return: Current market price of NMDC share on BSE is Rs 158.75 per share. Its 52-week high price is Rs 159.90 per share and 52-week low price is Rs 93.60 per share, respectively. The company has a market capitalisation of Rs 46,596.63 crore. NMDC shares surged rallied 16% in last 1-month, soared 26% YTD, gained 49% in last 1-year, jumped 140% in last 3-years. In last 5-years, NMDC jumped 75%.

NMDC Financials: The company for the quarter ended June 2023 declared its profit at Rs 1649.91 crore as against Rs 1473.03 crore in the year-ago period, as per the BSE filing.
The leading iron ore company declared a 13% surge in its consolidated net profit to Rs 1,661.04 crore for April-June quarter as a result of higher income. Its total income rallied to Rs 5,688.87 crore from Rs 4,913.06 crore in the year-ago quarter.

About: NMDC, a government-owned company, is India's largest iron ore producer. NMDC is operating four iron ore mechanised mines viz., Bailadila Iron Ore Mines - Kirandul Complex (Dep-14, 14 NMZ, 11B and 11C), Bailadila Iron Ore Mine - Bacheli Complex (Dep-5,10 and 11A) in Chhattisgarh, Donimalai Iron Ore Mine and Kumaraswamy Iron Ore Mine in Karnataka. The company also produces and sells diamonds, sponge iron, and wind power.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.