NMDC up for third straight day, touches 14-year high after April business update
NMDC, the country's largest iron ore producer, continued their upward trajectory for the third consecutive trading day on Monday, surging by 1% to reach a 14-year peak of ₹271.70 per share. The last time the stock reached this level was in 2010. NMDC's shares have been on an upward trend since June 2023, closing nine out of ten subsequent months in positive territory and accumulating a gain of 143%.
From their low point of ₹47.30 per share in 2020, the shares are currently trading 471% higher. Despite this significant rally, the stock still has a long way to go to reach its all-time high of ₹439 per share, achieved in January 2010. Also Read: PFC, REC, IREDA, PNB, others decline up to 13%: Why PSU stocks are falling sharply today - explained In its business update for April, released on May 2, the company reported a slight 2.60% growth in iron ore sales, reaching 3.43 million metric tons (MT), while production declined year-on-year to 3.48 MT in April 2024 from 3.51 MT in April 2023.
Additionally, on April 29, the public sector mining major raised iron ore prices by ₹400 per tonne for lump ore and by ₹200 for fines. The price adjustment took effect from April 27, with lump ore now priced at ₹6,200 per tonne and fines at ₹5,260 per tonne. The company's last price revision was in March 2024.
With the latest revision, lump ore prices have surged by 59% over the past year, while fines have seen a significant increase of 48% year-on-year. Also Read: Stocks to buy: These 9 stocks can rise 6-15% in next 3-4 weeks; do you own any? In a recent report, domestic brokerage firm LKP Securities initiated coverage on the stock with a 'buy' rating and set a target price of ₹297 per share. The brokerage outlined several key factors
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