NMDC Shares Inch Up As Brokerages Remain Upbeat After Q1 Results

Shares of NMDC were trading slightly higher after brokerages appeared optimistic about the firm's first-quarter results.

What Happened: NMDC reported a 19% year-on-year jump in its net profit to ₹1,970.77 crore from ₹1,652.22 crore. Revenue from operations remained almost flat at ₹5,414.2 crore.

The company's EBIDTA increased to ₹2,725 crore and the EBITDA margin increased by 51%.

Brokerage Estimates: ICICI Securities was upbeat about the company's Q1 performance, saying it was ahead of the brokerage's estimates. The brokerage added that the company is likely to face limited heat from a recent Supreme Court judgement on mining cess as the amount can be recovered from customers.

See Also: Voltas Shares Upbeat As Brokerages Raise Targets On The Back Of Strong Q1 Print

Last week, the top court held its July 25 verdict allowing states to tax mineral rights and mineral lands from mining companies. The judgement has been applied retrospectively, letting states charge tax for transactions dating back to April 1, 2005.

ICICI has an "add" rating on the stock with the target price revised downwards to ₹245.

The firm's EBITDA metrics surpassed Nuvama Institutional Equities' estimates. The brokerage had a "buy" call for the stock with the target price lowered to ₹286. It cut NMDC's FY25 and FY26 EBITDA estimates by 9% and 5%, respectively, to factor in lower prices and volume.

Motilal Oswal said that the company's revenue numbers were in line with its estimates. The brokerage further sees NMDC's volume growth to be robust and average selling price to improve in the second half of the financial year. It had a "buy" recommendation on the stock with a target price of ₹280.

Price Action: NMDC was trading 1.05% higher at ₹219.74 on Monday morning.

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