After a significant correction in the stock of NMDC(NSE: NMDC), the country’s largest iron ore company, bullish sentiment is once again visible.
After a correction of about 25 percent from its 52-week high, NMDC saw a strong rise yesterday (September 12).
The moment the market opened this Friday morning, it jumped more than one percent. In the last session, it ended with a gain of around 4.5 percent.
Based on the brokerage outlook, a top brokerage house is bullish on NMDC and has advised buying for a 33 percent upside.
The brokerage says that due to the fall in the prices of iron ore, NMDC stock came under pressure but now the prices have bottomed out.
Due to this, there can be good movement in the stock of NMDC in the future.
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NMDC: Price Will Go Up To ₹ 286
The brokerage firm has given a BUY rating on NMDC stock for the next 1 year. In addition, the target price per share was set at 286.
On 12 September 2024, the share price closed at 215. In this manner, the stock could see the potential to jump up by around 33 percent from its current price.
This stock has corrected about 25 from its 52-week high. NMDC’s 52-week high on BSE is 286.35 and low is 135.30.
The company’s market capitalization is Rs 64,670 crore.
NMDC: What Is The Brokerage’s Opinion
Another well-known Brokerage firm says that NMDC stock has come under pressure due to the fall in iron ore prices in the global market.
Apart from this, production decreased due to workers’ strikes, heavy monsoons, and some problems in logistics. This also had an impact.
The brokerage believes that global iron ore prices have bottomed out at around USD90/t.
Prices are expected to recover in FY25E/26E and may show an average level of USD105–110/t.
There is little chance of a big fall in NMDC prices as there has been a good increase in demand.
Apart from this, there is a recovery in prices in the global market. The brokerage believes that NMDC’s volume will recover in H2FY25.
NMDC Share Price History
NMDC’s stock rose for the second consecutive day on Friday. If we look at the performance of the stock in the long term, it has jumped 55 percent in the last year.
The return of the stock in six months is around 10 percent. In the last 3 months, there has been a good correction in the stock and it has fallen by about 18 percent.
This 52-week high stock traded for a price discount of around 25 percent.
Quick Fact
| Company name | NMDC |
|---|---|
| Market cap | ₹ 64,670 crore |
| Fall from 52-week high | 25% |
| 1-year possible target price | ₹286 |
| 12 September 2024 closing price | ₹215 |
| Possible upside | 33% |
| 6-month return | 10% |
| 1-year return | 55% |
| 3-month correction | 18% |
| Recent performance | Jumped 1% (Friday) |
| 52-week high price | ₹286.35 |
| 52-week low price | ₹135.30 |
| Factors for stock pressure | Fall in iron ore prices, worker strike, heavy monsoon, logistics problems |
| Possible recovery in iron ore prices | FY25/FY26 |
| Expected average iron ore price | USD 105–110/t |
| Current iron ore price | USD 90/t |
| Volume recovery forecast | H2FY25 |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
