NMDC share price jumps over 7% on robust Q3 results; here’s what brokerages say
NMDC share price soared over 7% on February 15, 2024, after the company posted strong results for the third quarter of the fiscal year. The consolidated net profit for the December quarter increased by 62% to ₹1,469.73 crore, up from ₹903.89 crore in the same period the previous year. The company’s total income also saw a significant rise to ₹5,746.47 crore from ₹3,924.75 crore over the previous year.
Furthermore, NMDC’s expenses in the third quarter were ₹3,516.78 crore as compared to ₹2,693.01 crore in the same period the previous year. The company’s board has also decided to issue an interim dividend of ₹5.75 per equity share for the 2023–2024 fiscal year, with February 27 chosen as the record date.
According to brokerages, iron ore sales volume was 11.4 million tonnes, up 19% year-on-year and quarter-on-quarter. The overall operating income for the quarter was ₹5,410 crore, an increase of 45% year-on-year and 35% quarter-on-quarter.
The results of the quarter were broadly in line with estimates, as the topline’s growth was driven by higher sales volume and an increase in iron ore realization. However, the firm reported an exceptional cost item of ₹252 crore towards levies for the diversion of forest land at its iron ore mines in the state of Karnataka.
The Q3FY24 blended average sale price (ASP) was ₹4,748 per tonne, up 13% quarter-on-quarter and 22% year-on-year.
Brokerages remain positive on the stock amidst healthy volume growth in offerings and considerable price hikes in the recent past resulting in a strong profitability outlook going forward.
NMDC is also undertaking numerous capex programs, which will eventually increase its mining capacity to 70-75 million tonnes from its current 50 million tonnes. Additionally, the company has announced an interim dividend of ₹5.75 per share.
In conclusion, the Q3 results and the positive expectations from brokerages have contributed to a significant surge in the NMDC share price, reflecting investor confidence in the company’s performance.
Please note that the views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. It is advisable for investors to consult with certified experts before making any investment decision.
