NMDC share price rises 1.7% encouraged by the strength in global iron-ore prices

livemint.com:

NMDC Ltd share price gained up to 1.72% on Thursday during intraday trades on the BSE. The stock has seen a rise close to 40% since end August, is trading near 52 week highs. The rise in international iron-ore prices is boosting investor confidence towards country's largest iron-ore producer.

The international iron-ore prices Ex-China that were close to $105 a tonne in August have risen to around $130 a tonne levels now. NMDC also had hiked prices for its output in October and can see more rate hikes feel analysts Notably the iron-ore demand in the country also remains strong led by strong Steel demand. The NMDC sales volume in October at 3.44 million tonne (mt) came much higher than 3.04 mt in October’2022.

Cumulative April-October sales volume at 23.99 mt came 23.4% higher compared to 19.44 mt in the year-ago period. The higher iron-ore prices and higher volumes bode well for earning prospects of NMDC. Also Read- Zomato share price drops over 2% on ₹400-crore worth GST notice NMDC already had reported a good September quarter performance.

NMDC’s Earnings before interest tax depreciation and amortization (Ebitda) grew almost 40% year-on-year. The adjusted net profit had risen 28.3% year-on-year. On a sequential basis, however, the performance was weaker owing to seasonal weakness led by the onset of monsoon.