Buy NMDC, target price Rs 114.4 : Nuvama Wealth

Nuvama Wealth brokerage has buy call on NMDC with a target price of Rs 114.4. The current market price of NMD. is Rs 109.4. Nuvama Wealth brokerage recommended to keep stop loss at Rs 106.2.
NMDC, incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 32148.75 Crore) operating in Mining sector.

NMDC key Products/Revenue Segments include Iron Ore, Pellet, Diamonds, Sale of services, Power for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 5842.52 Crore, up 48.86 % from last quarter Total Income of Rs 3924.75 Crore and down -16.95 % from last year same quarter Total Income of Rs 7034.83 Crore. Company has reported net profit after tax of Rs 2276.94 Crore in latest quarter.

The company’s top management includes Mr.Sumit Deb, Mr.Sanjay Singh, Mr.Vishal Babber, Mr.Anil Sadashivrao Kamble, Mr.Sanjay Tandon, Mr.Sukriti Likhi, Mrs.Rasika Chaube, Mr.Somnath Nandi, Mr.Dilip Kumar Mohanty, Mr.Amitava Mukherjee, Mr.A S Pardha Saradhi. Company has Sagar & Associates as its auditors. As on 31-12-2022, the company has a total of 293 Crore shares outstanding.

Investment Rationale
Given a closing above its 200 DMA on daily charts after nearly 7 months. 5-7% upside likely.

Promoter/FII Holdings
Promoters held 60.79 per cent stake in the company as of 31-Dec-2022, while FIIs owned 6.6 per cent, DIIs 19.2 per cent.