NMDC Stock Price Analysis and Quick Research Report. Is NMDC an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse NMDC. 

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). NMDC has a PE ratio of 9.98854615111181 which is low and comparatively undervalued.

• Return on Assets (ROA): Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. NMDC has ROA of 14.8181% which is a bad sign for future performance. (Higher values are always desirable.)

• Current ratio: The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. NMDC has a Current ratio of 1.7806.

• Return on equity: ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. NMDC has a ROE of 24.3468%. (Higher is better)

• Debt to equity ratio: It is a good metric to check out the capital structure along with its performance. NMDC has a Debt to Equity ratio of 0.1275 which means that the company has low proportion of debt in its capital.

• Sales growth: NMDC has reported revenue growth of 11.1512% which is poor in relation to its growth and performance. 

• Operating Margin: This will tell you about the operational efficiency of the company. The operating margin of NMDC for the current financial year is 34.8899288162404%.

• Dividend Yield: It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for NMDC is Rs 3.3 and the yield is 4.349%.

• Earnings Per Share: It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of NMDC is Rs 7.5957. The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of NMDC in Ticker for free. Also, one can get the intrinsic value of NMDC by using Valuation Calculators, which are available with a Finology ONE subscription. 

NMDC FAQs

Q1. What is NMDC share price today?
Ans: The current share price of NMDC is Rs 75.87.

Q2. What is the market capitalisation of NMDC?
Ans: NMDC has a market capitalisation of Rs 66703.51975185 Cr., calculated based on its latest share price.

Q3. What are the P/E and P/B ratios of NMDC?
Ans: The PE ratio of NMDC is 9.98854615111181 and the P/B ratio of NMDC is 2.11435992330673, showing how the stock is valued against its earnings and book value.

Q4. What is the 52-week high and low of NMDC share?
Ans: The 52-week high share price of NMDC is Rs 82.83, and the 52-week low share price of NMDC is Rs 59.53.

Q5. Does NMDC pay dividends?
Ans: Currently, NMDC pays dividends. Dividend yield of NMDC is around 4.349%.

Q6. What are the face value and book value of NMDC shares?
Ans: The face value of NMDC shares is Rs 1, while the book value per share of NMDC is around Rs 35.8832. Face value is the nominal value set by the company, whereas book value reflects its accounting worth.

Q7. What is the debt of NMDC?
Ans: NMDC has a total debt of Rs 3770.45 Cr., which affects investor sentiment and financial stability. 

Q8. What are the ROE and ROCE of NMDC?
Ans: The ROE of NMDC is 24.3468% and ROCE of NMDC is 30.5105%. ROE shows how efficiently the company is generating profit from shareholders’ equity, while the ROCE is reflects how efficiently the company uses its capital to generate returns.

Q9. Is NMDC a good buy for the long term?
Ans: The NMDC long-term outlook depends on debt levels, earnings growth, and sector trends. If it sustains profits and manages debt well, it may be considered for long-term investment.

Q10. Is NMDC undervalued or overvalued?
Ans: Based on valuation ratios like P/E, P/B, and EV/EBITDA, one can analyse whether the NMDC appears undervalued or overvalued at current levels. You can check detailed valuation metrics and peer comparisons on Finology Ticker.

Q11. How to check NMDC’s financials?
Ans: You can review NMDC’s financial statements - including balance sheet, income statement, and quarterly results - on Finology Ticker.