NMDC shares in focus as strike ends, normal operations resume
NMDC's strike by trade unions has ended, restoring normal operations as employees resumed work on March 20. This follows a significant production drop since March 6, affecting India's largest iron ore producer. The stock has been recommended as a ...
By ETMarkets.com |
IANS
NMDC shares will be in focus on Monday after the state-owned miner’s strike ended with trade unions withdrawing their protest over wage settlement.
The company confirmed that employees resumed duties from the first shift on March 20, restoring normal operations across all projects.
The strike, which began on March 6, had significantly impacted production at India’s largest iron ore producer. In a statement, NMDC said the Federation of Unions instructed its members to return to work and support optimal performance.
“NMDC acknowledges the importance of its workforce, which has been its backbone. This decision to resume work will strengthen trust and help the company meet its production targets,” the company stated.
Earlier, NMDC had termed the strike illegal, citing a slowdown in work despite ongoing wage revision negotiations.
The last wage revision took place in 2017, with the next one due in 2022. Although an agreement was reached in August 2024, it required approval from the Ministry of Steel. The company assured unions that it was actively pursuing the matter with the ministry.
The production slowdown posed a significant challenge to NMDC’s annual target of 48 million tonnes for FY25. Output had fallen by over 60% in recent days, raising concerns about financial performance, PTI reported.
NMDC shares target price
As per Trendlyne data, the average target price of the stock is Rs 73, which shows an upside of 8% from the current market prices. The consensus recommendation from 17 analysts for the stock is a 'Hold'.
NMDC shares performance
On Friday, NMDC shares closed at Rs 67.5, rising 1.5% on the BSE, while the benchmark Sensex gained 0.73%. The stock has declined 5% in the last three months but gained 82% over the last two years. The company’s market capitalization stands at Rs 59,335 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
The company confirmed that employees resumed duties from the first shift on March 20, restoring normal operations across all projects.
The strike, which began on March 6, had significantly impacted production at India’s largest iron ore producer. In a statement, NMDC said the Federation of Unions instructed its members to return to work and support optimal performance.
“NMDC acknowledges the importance of its workforce, which has been its backbone. This decision to resume work will strengthen trust and help the company meet its production targets,” the company stated.
Earlier, NMDC had termed the strike illegal, citing a slowdown in work despite ongoing wage revision negotiations.
The last wage revision took place in 2017, with the next one due in 2022. Although an agreement was reached in August 2024, it required approval from the Ministry of Steel. The company assured unions that it was actively pursuing the matter with the ministry.
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The production slowdown posed a significant challenge to NMDC’s annual target of 48 million tonnes for FY25. Output had fallen by over 60% in recent days, raising concerns about financial performance, PTI reported.
NMDC shares target price
As per Trendlyne data, the average target price of the stock is Rs 73, which shows an upside of 8% from the current market prices. The consensus recommendation from 17 analysts for the stock is a 'Hold'.
NMDC shares performance
On Friday, NMDC shares closed at Rs 67.5, rising 1.5% on the BSE, while the benchmark Sensex gained 0.73%. The stock has declined 5% in the last three months but gained 82% over the last two years. The company’s market capitalization stands at Rs 59,335 crore.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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