National Mineral Development Corporation (NMDC) stands as one of the largest public sector mining enterprises in India, focusing mainly on the exploration and extraction of iron ore and various other minerals. Being a government-owned entity, NMDC is vital in providing essential raw materials for sectors such as steel production, construction, and infrastructure development. With a commendable history, a diverse portfolio, and ambitions for growth, investors frequently seek insights into its future potential. In this analysis Future Stock Value will explore the anticipated NMDC share price target 2026, along with important factors to take into account.
NMDC Overview
NMDC Limited, India’s largest iron ore producer, is an important player in the steel and mining industry. With rising demand for infrastructure and steel production, NMDC is well positioned for future expansion. Investors are interested in NMDC’s stock performance and the predicted price goal for 2026. This blog looks at NMDC’s future prospects, financial performance, and expert estimates.
NMDC Limited is a Navratna public sector corporation under the Ministry of Steel of the Government of India. It is the country’s largest iron ore producer, having major operations in Karnataka and Chhattisgarh. The company has also expanded into steel production, thereby boosting its portfolio.
NMDC NMDC Share Price
As we look towards 2026, various scenarios may emerge. Although it is challenging to forecast the precise future price of NMDC stock, investors typically project potential price targets by analyzing industry growth trends and the company’s underlying fundamentals. The anticipated price target for NMDC Share Price could be influenced by several key factors.
Current Price ₹ 65/-
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2026 | ₹ 250 – ₹ 280 | ₹ 200 – ₹ 260 | ₹ 180 – ₹ 210 |
| 2030 | ₹ 700 – ₹ 750 | ₹ 650 – ₹ 700 | ₹ 600 – ₹ 650 |
- Bullish Scenario: Given the sustained robust demand for iron ore, an effective increase in mining capacity, and a supportive governmental policy framework, NMDC may experience a substantial increase in its stock price. Investors could anticipate a potential upside of 20% to 30% in the coming years, which may drive the stock price even higher.
- Bearish Scenario: In a more conservative outlook, should NMDC encounter regulatory obstacles, experience sluggish capacity expansion, or witness a decline in global iron ore prices, the stock is likely to demonstrate moderate growth with restricted upside potential.
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NMDC Company Essentials
- Market Cap : ₹ 57,814.99 Cr.
- Enterprise Value : 48,898.58 Cr.
- No. of Shares : 879.18 Cr.
- P/E : 9.31
- P/B : 2.01
- Face Value : ₹ 1
- Div. Yield : 3.68 %
- Book Value (TTM) : ₹ 32.74
- CASH : ₹ 12,272.95 Cr.
- DEBT : ₹ 3,356.54 Cr.
- Promoter Holding : 60.79 %
- EPS (TTM) : ₹ 7.06
- Sales Growth : 20.53 %
- ROE : 23.60 %
- ROCE : 30.41 %
- Profit Growth : 1.87 %
NMDC Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| Coal India | 379.45 | 2,33,844.73 | 8.32 | 13.59 | 27.92 | 92.66 | 94.29 | 132.23 | 13.33 |
| NMDC | 65.76 | 57,814.99 | 2.01 | 9.31 | 7.06 | 23.60 | 30.41 | 2.72 | 5.05 |
| KIOCL | 331.80 | 20,098.33 | 11.19 | 0 | -2.04 | -4.25 | -2.23 | 10.84 | -357.49 |
| GMDC | 321.65 | 10,252.32 | 1.67 | 16.14 | 19.98 | 10.38 | 13.83 | 4.16 | 10.31 |
| Sandur Manganese | 390.80 | 6,321.79 | 2.73 | 18.05 | 21.62 | 11.64 | 15.55 | 5.05 | 11.59 |
| MOIL | 300.90 | 6,129.99 | 2.35 | 17.64 | 17.08 | 12.49 | 16.48 | 4.23 | 8.36 |
| Ashapura Minechem | 481.65 | 4,617.25 | 17.33 | 32.20 | 15.01 | 154.93 | 99.28 | 13.86 | 52.80 |
NMDC Quarterly Result (All Figures in Cr.)
| PARTICULARS | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|
| Net Sales | 4,013.98 | 5,409.90 | 6,475.27 | 5,377.80 | 4,806.57 |
| Total Expenditure | 2,820.65 | 3,380.18 | 4,338.88 | 3,017.04 | 3,366.20 |
| Operating Profit | 1,193.33 | 2,029.72 | 2,136.39 | 2,360.76 | 1,440.37 |
| Other Income | 320.66 | 336.51 | 417.64 | 364.51 | 360.49 |
| Interest | 18.60 | 32.05 | 21.40 | 23.09 | 29.09 |
| Depreciation | 88.55 | 81.90 | 97.49 | 73.61 | 84.23 |
| Exceptional Items | 0 | -252.30 | -29.85 | 0 | 0 |
| Profit Before Tax | 1,406.84 | 1,999.98 | 2,405.29 | 2,628.57 | 1,687.54 |
| Tax | 379 | 507.30 | 943 | 644.38 | 418.39 |
| Profit After Tax | 1,027.84 | 1,492.68 | 1,462.29 | 1,984.19 | 1,269.15 |
| Adjusted EPS (Rs) | 1.17 | 1.70 | 1.66 | 2.26 | 1.44 |
NMDC Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 11,699.22 | 15,370.06 | 25,964.79 | 17,666.88 | 21,293.81 |
| Total Expenditure | 5,688.83 | 6,574.20 | 13,333.85 | 11,603.84 | 13,938.61 |
| Operating Profit | 6,010.39 | 8,795.86 | 12,630.94 | 6,063.04 | 7,355.20 |
| Other Income | 513.79 | 349.88 | 718.33 | 747.85 | 1,355.54 |
| Interest | 9.88 | 16.81 | 39.06 | 75.23 | 78.24 |
| Depreciation | 294.38 | 227.83 | 286.85 | 335.41 | 337.05 |
| Exceptional Items | -96.44 | 0 | 0 | 1,237.27 | -282.15 |
| Profit Before Tax | 6,123.48 | 8,901.10 | 13,023.36 | 7,637.52 | 8,013.30 |
| Tax | 2,512.57 | 2,648.45 | 3,575.09 | 2,108.21 | 2,380.42 |
| Net Profit | 3,610.12 | 6,253.05 | 9,447.59 | 5,528.63 | 5,631.89 |
| Adjusted EPS (Rs.) | 3.93 | 7.11 | 10.75 | 6.29 | 6.41 |
NMDC Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 306.19 | 293.07 | 293.07 | 293.07 | 293.07 |
| Total Reserves | 27,227.76 | 29,463.07 | 17,582.19 | 22,039.24 | 25,112.71 |
| Borrowings | 0 | 523.80 | 0 | 0 | 0 |
| Other N/C liabilities | 436.33 | 694.42 | 679.19 | 1,113.08 | 1,316.81 |
| Current liabilities | 9,071.96 | 9,589.48 | 13,532.72 | 14,161.87 | 15,248.59 |
| Total Liabilities | 37,042.24 | 40,563.84 | 32,087.17 | 37,607.26 | 41,971.18 |
| Assets | |||||
| Net Block | 3,016.73 | 3,118.45 | 2,833.77 | 3,013.87 | 3,162.65 |
| Capital WIP | 15,471.56 | 17,076.68 | 1,298.48 | 1,961.72 | 3,230.51 |
| Intangible WIP | 29.64 | 51.42 | 5 | 6.49 | 4.14 |
| Investments | 985.59 | 984.88 | 987.32 | 886.72 | 991.65 |
| Loans & Advances | 2,049.87 | 2,151.23 | 2,411.52 | 4,851.45 | 4,976.27 |
| Other N/C Assets | 2,319.85 | 2,446.47 | 965.91 | 1,122.69 | 1,311.96 |
| Current Assets | 13,169 | 14,734.71 | 23,585.17 | 25,764.32 | 28,294 |
| Total Assets | 37,042.24 | 40,563.84 | 32,087.17 | 37,607.26 | 41,971.18 |
NMDC Corporate Actions (Dividend)
| EX DATE | RECORD DATE | DIVIDEND% | AmountRs. | TYPE |
|---|---|---|---|---|
| 17 Sep 2024 | 18 Sep 2024 | 150 | 1.5 | Final |
| 27 Feb 2024 | 27 Feb 2024 | 575 | 5.75 | Interim |
| 31 Aug 2023 | 01 Sep 2023 | 285 | 2.85 | Final |
| 24 Feb 2023 | 24 Feb 2023 | 375 | 3.75 | Interim |
| 17 Feb 2022 | 18 Feb 2022 | 573 | 5.73 | Interim |
NMDC Shareholding Pattern
| Summary | Dec 2024 | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Feb 20, 2023 |
|---|---|---|---|---|---|---|---|---|---|
| Promoter | 60.8% | 60.8% | 60.8% | 60.8% | 60.8% | 60.8% | 60.8% | 60.8% | 60.8% |
| FII | 4.6% | 4.6% | 4.5% | 4.6% | 4.3% | 3.9% | 3.3% | 4.3% | 5.8% |
| DII | 16.0% | 16.1% | 16.2% | 17.0% | 19.1% | 20.2% | 20.5% | 20.0% | 20.2% |
| Public | 18.6% | 18.6% | 18.5% | 17.6% | 15.8% | 15.1% | 15.5% | 15.0% | 13.2% |
“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”
Key Growth Drivers for the NMDC
Several factors are anticipated to impact the future direction of NMDC Share Price. and its share price in the years ahead. The following are significant elements that could influence its performance and NMDC Share Price Target 2026.
An Analysis of NMDC’s Business Model
NMDC’s main product is iron ore, an essential raw material for the steel manufacturing industry. The company manages significant mining operations in Chhattisgarh and Karnataka and is looking to increase its production capacity. Additionally, NMDC Share Price has broadened its portfolio to include a range of other minerals, including copper and diamonds, thereby enhancing its standing within the mining industry.
Elements Influencing the Future of NMDC
Multiple essential elements will influence the future trajectory of NMDC Share Price Target 2026..
- Demand for Iron Ore and Steel: India ranks among the largest consumers of steel globally, and the increasing demand for iron ore is expected to be fueled by the nation’s expanding infrastructure and manufacturing industries. The government’s initiatives aimed at infrastructure enhancement, such as the “Make in India” and “Atmanirbhar Bharat” programs, are likely to serve as significant drivers for the growth of NMDC.
- International Market Trends: Iron ore prices are significantly affected by worldwide demand, especially from nations such as China, which is the largest consumer of iron ore globally. Fluctuations in international market dynamics and global trade relationships may have a considerable effect on NMDC’s revenue and profitability.
- Capacity Expansion: NMDC is actively working to enhance its production capacity through the expansion of its current mines and the establishment of new ones. The ability of the company to increase production while maintaining high quality standards will be crucial for its sustained growth in the long run.
- Government Policies: As a public sector entity, NMDC’s performance is subject to the influence of governmental policies. Modifications in taxation, mining regulations, or environmental policies may affect the company’s operational activities and stock market performance of NMDC Share Price.
- The expansion of variety and progress in technology: NMDC’s expansion into non-ferrous mining, particularly its current emphasis on copper, diamonds, and various other minerals, is set to broaden its revenue sources. Additionally, the implementation of cutting-edge mining technologies and enhancements in operational efficiency may lead to increased profitability.
Analysis of NMDC Stock Performance: NMDC Share Price
Historically, the stock of NMDC Share Price has demonstrated a consistent upward trajectory, indicative of its robust fundamentals and capacity for sustained revenue growth. Nevertheless, similar to numerous other stocks, it has faced volatility stemming from variations in global commodity prices, domestic economic circumstances, and governmental policies.
Risks and Challenges of NMDC Ltd.
NMDC presents promising growth opportunities; however, investors must take into account various risks prior to making any investment decisions.
- Commodity Price Volatility: NMDC, like many mining companies, is susceptible to variations in global commodity prices, which may affect its profitability and share value.
- Regulatory Risks: Alterations in environmental regulations or governmental mining policies may impact NMDC’s operational efficiency and profitability.
- Operational Risks: Mining is an industry that requires significant capital investment and is characterized by its complexity. Any delays in expansion, project implementation, or unforeseen disruptions may adversely affect the performance of NMDC.
Conclusion: Is NMDC a Good Investment for 2026?
NMDC offers a compelling investment opportunity for long-term investors optimistic about the expansion of India’s infrastructure and steel sectors. Given the robust growth potential in the iron ore and non-ferrous metal industries, NMDC is strategically positioned for future success. Nevertheless, as with any investment, it is crucial to thoroughly assess the associated risks and take into account your individual investment timeline and risk appetite.
For individuals aiming for NMDC share price target, it is essential to monitor global economic trends, iron ore prices, and NMDC’s expansion strategies to determine whether the investment is a strong buy or if a more cautious approach is advisable.
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