LKP Securities is optimistic about NMDC Ltd, foreseeing significant returns amid favourable conditions in the domestic steel market. The mining company is poised to benefit from robust volume growth, expected to achieve a compound annual growth rate of around nine per cent from FY24 to FY26.
With strong operational capabilities, ambitious expansion strategies, a healthy net cash position, and ongoing strong demand for domestic steel, NMDC is projected to achieve a Revenue, EBITDA, and PAT (Profit After Tax) growth rate of 9%, 16%, and 14% respectively over FY25-26. Currently, the stock is trading at 6.8 times and 5.3 times the estimated Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for FY25E and FY26E, respectively.
Maintaining their ‘BUY’ recommendation, LKP Securities has revised the target price (TP) for NMDC to ₹301 from ₹297, valuing it at 6.7 times the EV/EBITDA ratio for FY26E.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
