NMDC plunges 5% after Q2 profit declines 62%; Citi downgrades stock

NMDC on Monday posted a 62% fall in its consolidated net profit to Rs 885.65 in Q2FY23 against Rs 2,339.58 in Q2FY22.

The company's total income fell 45.44% to Rs 3,754.77 crore in the second quarter of the current financial year from Rs 6,882.44 crore in the year-ago period. During the same period, expenses also fell 31.34% at Rs 2,569.63 crore against Rs 3,742.64 crore.

Global brokerage Citi downgraded NMDC to sell with a target price of Rs 100. The downgrade is largely because of domestic ore price concerns.


NMDC trades at 4x 1-yr forward, EV/EBITDA on consensus -- in line with global peers. The global investment bank said that it struggles to find upside triggers.

At 11.11 am, the scrip was trading 4.72% lower at Rs 108. The stock has also plunged nearly 20% in the last six months.