Buy NMDC, target price Rs 155: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on NMDC with a target price of Rs 155. The current market price of NMDC is Rs 112.35.

NMDC, incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 32881.40 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 3924.75 Crore, up 4.53 % from last quarter Total Income of Rs 3754.77 Crore and down -34.88 % from last year same quarter Total Income of Rs 6026.68 Crore. Company has reported net profit after tax of Rs 903.89 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
With export of steel and pellets picking up pace and no drag from the steel business, the brokerage expects NMDC to continue its volume growth journey. The brokerage reiterate its BUY rating on the stock with a target price of Rs 155 (5xEV/EBITDA).

The brokerage believes NMDC is well placed to capitalize on the growth opportunity ahead.

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.