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NMDC is a Good Pick for Short to Long Term

Published 23-06-2021, 04:50 pm
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NMDC (NS:NMDC) incorporated in 1958 as a Government of India fully owned public enterprise. NMDC is under the administrative control of the Ministry of Steel, Government of India. The Company has been categorized by the Department of Public Enterprises as "NAVRATNA" Public Sector Enterprise in 2008.
 
Since inception involved in the exploration of a wide range of minerals including iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines viz., Bailadila Deposit-14/11C, Bailadila Deposit-5, 10/11A (Chhattisgarh State) and Donimalai Iron Ore Mines (Karnataka State).

Kindly note that the prices of Iron Ore w.e.f. 12-05-2021 has been fixed as under:
i) Lump Ore (65.5%, 6-40mm) @ Rs. 7,650/- per ton
ii) Fines (64%, -10mm) @ Rs. 6,560/- per ton

Kindly also note that the prices of Iron Ore w.e.f. 06-06-2021 has been fixed as under:
i) Lump Ore (65.5%, 6-40mm) @ Rs. 7,650/- per ton
ii) Fines (64%, -10mm) @ Rs. 6,560/- per ton
 
Besides iron ore, NMDC also plans to go for other minerals like Coal, Diamond, gold etc. for which NMDC is looking forward to leases / buy properties from foreign countries directly / under Special Purpose Vehicle / Joint Ventures. NMDC is also investing in the development of renewable energy resources as an environmentally friendly investment. A Windmill project (10.5MW capacity) has been completed & commissioned at Karnataka. Apart from iron ore NMDC is developing the Magnesite mine in Jammu and Arki Limestone Project in Himachal Pradesh.
 
NMDC today’s closed price is INR 178.85 and its FY 2021 EPS is 20.62 and it is trading at a PE of 8.7 which is very attractive. NMDC's future looks bright and investors may take interest for short to long-term investments.
 

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