NMDC Ltd.
Metals · NSE
52-week range
₹59 – ₹93
From 52w high
-4.3%
RSI (14)
56.7
vs SMA 50 / 200
↑ 50 · ↑ 200
NMDC, the state-owned iron ore miner, trades at ₹88.01 — up 39.87% over 12 months and 14.9% above its 200-DMA of ₹76.57 — with a trailing PE of 11.21 and a forward PE of 9.59, the lowest among available Metals sector peers. A 3.94% dividend yield and a 24.88% profit margin reflect the high-margin nature of the iron ore business, while a debt-to-equity of 11.21 and a 5-year earnings CAGR of -6.5% introduce material balance sheet and earnings-quality questions.
- ✓Lowest PE among available Metals sector peers at 11.21 (vs. Hindalco 14.3, Tata Steel 29.0, JSW Steel 42.0, Adani Enterprises 33.9), with a forward PE of 9.59 suggesting earnings expectations are priced at a discount to the sector.
- ✓Dividend yield of 3.94% and a profit margin of 24.88% indicate a business that converts a meaningful share of revenue into profit and distributes it, unusual in the capex-heavy metals segment.
- ✓Price is above both the 50-DMA (₹83.41) and 200-DMA (₹76.57), with a 12-month gain of 39.87% and only a 5.13% drawdown from the 52-week high — the near-term price structure reflects sustained demand.
- ✓Revenue has compounded at 15.9% over 5 years, and the government-backed monopoly in domestic iron ore supply provides a degree of pricing and volume stability not available to most private-sector metals peers.
- ✗Debt-to-equity of 11.21 is materially elevated for a non-financial sector company with a rising debt trend; this level of leverage amplifies downside in a commodity downturn.
- ✗5-year earnings CAGR of -6.5% against a revenue CAGR of 15.9% points to a 26-pp gap between top-line and bottom-line compounding — costs, royalties, or capital charges have absorbed revenue growth over the period.
- ✗FCF was positive in only 3 of available persistence years, combined with rising debt, indicating capital requirements consistently exceed or strain internally generated cash.
- ✗Quality score of 53 and consistency score of 18 (fundamentals persistence) are mid-range; ROE data is missing entirely, removing a key dimension of capital efficiency assessment.
- ·Q4 results season is underway for Indian metals companies; a preview (MSN, May 2026) groups NMDC alongside Tata Steel, Hindalco, and SAIL, with sector-wide earnings scrutiny on volume and margin trajectory.
- ·An Indian Express analysis titled 53 million tonnes output, 33% margins, 10x earnings: NMDC volume-price paradox (April 2026) flagged a tension between the company’s scale and its earnings compounding record — aligning with the 5-year earnings contraction visible in the fundamental data.
- ·An independent director (Sanjay Tandon) ended his board tenure in April 2026; board composition changes at a PSU are a governance data point worth monitoring for continuity of oversight.
- ?Does the 5-year earnings CAGR of -6.5% reflect a structural cost issue — rising royalties, logistics spend, or sustaining capex — or a cyclical iron ore price trough that has since reversed?
- ?At a D/E of 11.21 with a rising debt trend, what is the debt-service coverage at current EBITDA levels, and how does that coverage change if realisations decline 20%?
- ?The forward PE of 9.59 implies earnings recovery expectations — what volume and price assumptions underpin that earnings estimate, and how sensitive is the estimate to a 10% change in iron ore realisations?
- ?NMDC’s government-ownership structure shapes both its dividend policy and its capital allocation decisions; how has the payout ratio evolved relative to capex needs, and does the rising debt trend reflect funding gaps or strategic expansion?
PE
11.2
Forward PE
9.6
ROE
—
Profit margin
+24.9%
D/E
11.21
Dividend yield
+3.9%
Quality score
53/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.