POSITIONAL TRADING: NMDC SHARE PRICE

Today’s stock is NMDC share.

BUSINESS ANALYSIS

NMDC shares are engaged in the exploration and production of Iron ore and diamond. Production and sale of Sponge Iron and generation and sale of Wind Power.

National Mineral Development Corporation (NMDC) was established in 1958 as a fully owned government company under the administrative control of the Ministry of steel and is one of the most profitable ones among the Navratna companies.

NMDC share is one of the largest Iron ore manufacturers in India which accounts for 18% of the total domestic production.

The company has 7 Iron mines across India.

NMDC has the only mechanized Diamond mine in India at Panna, Madhya Pradesh.

Allocation of 2 coal blocks in Jharkhand have been done to NMDC.

NMDC shares a stake of 92.3% in the Legacy Iron ore Ltd which is based in Australia.

NMDC, SAIL and RINL have a joint venture known as International Coal Ventures.

NMDC is highly into R&D activities for exploration of natural resources across the nation.

NMDC share is one of the world’s low cost Iron ore producers and they have ventured into the steel making business as well.

Now, coming to the financials of the NMDC share.

FINANCIAL ANALYSIS

The Market Capitalization of NMDC share is ₹ 51,110 Cr.

The NMDC share has a price to earnings ratio of 8.14 which is lesser than industry price to earnings ratio of 16.6.

The return on capital employed of the NMDC share is 29.9% which indicates that the company is producing good returns for the capital which is used.

The return on equity of NMDC share of 21.8% is superb, indicating that the company is using the investors’ money quite cautiously.

The debt to equity ratio is 0.05 which is almost negligible.

NMDC shares are also paying a healthy dividend of 39.39%.

In the last 5 years, the NMDC share has delivered an excellent profit growth of 19.78% CAGR.

The sales of the NMDC share have reached to it’s all time high of Rs 6,848 Cr.

From the last 4 quarters (Jun 2020, Sep 2020, Dec 2020 & Mar 2021) the operating profit of NMDC share has increased from Rs 753 Cr to Rs 4,240 Cr.

The earning per share of the company is 9.68.

The sales of the NMDC share were Rs 11,699 Cr in March 2020 which increased drastically to Rs 15,370 Cr in March 2021.

There has been a tremendous growth in the operating profit YOY which was Rs 5,782 Cr in March 2020 and now is Rs 8,789 Cr in March 2021.

There is a slight decrease in the share capital from Rs 293 Cr in March 2021 to Rs 306 Cr in March 2020.

In the year 2021, the reserves have increased to Rs 29,591 Cr from Rs 27,367 Cr in the year 2020 which shows the massive interest of investors into NMDC share.

The company has a net cash flow of Rs 359 Cr.

The promoters have a major holding of 68.29%.

The FIIs have a holding of just 4.95%.

DIIs have a holding of 19.99% while 6.77% is with the public.

The company is in safe hands and their growth is very promising with such superb financials.

This is a brief overview of the financials of the NMDC share which shows the dominance in their respective market.

Now, let’s deep dive into the technicalities of NMDC shares.

CHART PATTERN ANALYSIS

If we take a closer look at the chart in a daily time frame, there is a formation of a rounding bottom pattern.

NMDC shares are trading near its support area and after spending some good consolidation time the stock is ready to fly.

For NMDC share there are two targets as stated in the above image.

First target is the price till the resistance value and the second target is derived from the rounding bottom pattern.

The NMDC share price on 09th August 2021 is Rs 213 which would definitely change in the upcoming future.

MOVING AVERAGE OF NMDC SHARE PRICE

For NMDC share analysis, we are taking 9 days and 21 days moving average.

The 9 days and 21 days moving average are trading quite near to each other so once the 9 days moving average bounces from the psychological support of the 21 days moving average we’ll be able to see a massive uptrend.

The red line highlights the 9 days moving average while blue line indicates shows the 21 days moving average.

SUPER TREND OF NMDC SHARE PRICE

When we take a closer look at the 4 hour chart, the Super trend is suggesting a buying signal.

This is the right time to enter NMDC shares to attain maximum profits.

DISCLAIMER:

Bottom of this page contains the disclaimer for this stock.