NMDC share price scales 52 week high on strong volume growth, price hikes improving earning growth prospects
NMDC Ltd scaled 52-week highs of ₹186 on Monday having gained almost 3% in the last 2 trading sessions. The gains are being led by record production and sales growth being reported by NMDC NMDC sales at 3.79 million Tonne (MT) during November grew almost 25% year-on-year. It is not only the month of November that saw strong sales growth but also year to date in FY24, NMDC sales at 27.78 mt have grown 23.5% year-on-year.
The NMDC production volumes at 27.31 mt have also grown 17.10 % year on year. Also Read- Hindustan Zinc shares rise 6% as board to consider second dividend on December 6 Its is the strong production and sales growth that is helping improve the earnings prospects of the company. The steel demand in the country remains strong led by governments infrastructure push.
NMDC post Q2 results while had kept its FY24 target unchanged at 47-49mt and has slightly increased FY25E target to 51-53mt. Notably the second half is usually a strong period for volume pickups and heavy capex is expected to increase the evacuation capacity of NMDC, which will support the volume growth going forward, said analysts Notably even the iron-ore prices are on the rise. The global iron-ore prices (Ex China) that have risen above $130 a tonne were much below these levels in August at around $105 a tonne.
NMDC too has taken two price hikes for its produce. Lump Ore prices at Rs. 5,400/- per ton, increased by ₹200 a tonne in October while those for fines at Rs.
4,660/- per ton also were raised by ₹200 a tonne. Also read- Budget 2024: FPIs likely to stay cautiously positive on stock markets, here's why With improving realisations a good volume growth is likely to support earnings. NMDC is on track to exceed 50mt of volumes in FY25 said
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