NMDC shares in focus after iron ore production rises 5.1% in December

Shares of NMDC, India's largest iron ore miner, is in the spotlight after reporting a 5.1% year-on-year (YoY) increase in iron ore production for December 2024, reaching 4.71 million tonnes (MT) compared to 4.48 MT in the same month last year.

However, the company's iron ore sales declined by 6.7% YoY to 3.91 MT, down from 4.19 MT in December 2023.

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In Q2 FY25, NMDC reported an 18.1% YoY increase in net profit at Rs 1,211.6 crore. In the corresponding quarter of the previous fiscal, NMDC posted a net profit of Rs 1,026 crore. The company's revenue from operations surged 22.5% to Rs 4,919 crore against Rs 4,014 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA was up 16.4% to Rs 1,385.7 crore in the second quarter of this fiscal over Rs 1,191 crore in the year-ago period. The EBITDA margin stood at 28.2% in the reporting quarter versus 29.7% in the Q2 of FY24.

As per Trendlyne data, the average target price of the stock is Rs 81, which indicates an upside of 23% from the current market prices. The consensus recommendation from 19 analysts for the stock is a 'Hold'.

Technically, the stock's relative strength index (RSI) is at 25.3. According to Trendlyne, an RSI below 30 is considered oversold, while above 70 indicates overbought conditions. Additionally, the MACD is at -1.5, which is below its signal and center line, this is a strong bearish indicator.

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On Wednesday, NMDC shares closed at Rs 65.98, up 0.05% on the BSE, while the benchmark Sensex rallied 0.47%. The stock has declined 6% in the past 12 months and 21% over the six months, with the company’s market capitalization now at Rs 58,008 crore.

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