Emkay Global has buy call on NMDC with a target price of Rs 160. The current market price of NMDC is Rs 119.4.

NMDC Ltd., incorporated in the year 1958, is a Large Cap company (having a market cap of Rs 36680.96 Crore) operating in Mining sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 2229.89 Crore, up 15.09 % from last quarter Sales of Rs 1937.50 Crore and down -.53 % from last year same quarter Sales of Rs 2241.76 Crore. Company reported net profit after tax of Rs 772.53 Crore in latest quarter.

Investment Rationale
The stock is trading at 3.1x FY22 EV/EBITDA ex of Steel CWIP (valued at 50% BV) and 1x P/B for 16% RoE (23% ex Steel CWIP), which look inexpensive given the strong returns delivered by the mining business.


Promoter/FII Holdings
Promoters held 69.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 4.5 per cent, DIIs 20.4 per cent and public and others 5.5 per cent.