Why Brokerages are Bullish on NMDC

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Why Brokerages are Bullish on NMDC
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Shares of PSU mineral producer NMDC Ltd (NS: NMDC ) have been in a rough patch in the last month. The stock has fallen over 7% in the time period. It closed July 19 at Rs 174.85.

However, brokerages are positive on the stock with a potential upside of almost 23%. ICICI Direct has a target price of Rs 210 on the stock. It said, “Over the next couple of years, uptick in volumes augurs well for NMDC. Furthermore, blended realisations of NMDC are also likely to improve further during Q1FY22 on the back of price hikes of Rs 2,250/tonne for fines and Rs 2,300/tonne for lumps taken by the company during April-May 2021. These price hikes would offset the additional royalty premium. On the back of volume growth coupled with healthy pricing environment, we have a positive view on NMDC. We upgrade the stock from HOLD to BUY recommendation.”

Edelweiss has a target price of Rs 215 on the stock. NMDC has approved the demerger of its steel plant, and the brokerage believes it’s a matter of time before Dalal Street starts attributing value to the same. NMDC has so far funded the plant through internal accruals. The brokerage has also upgraded the stock from a hold to a buy.

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  • Kanwal Malhotra @Kanwal Malhotra
    It is F & O stock and is in ban period.That is why movement is slow.
    Like 9

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