DISCLAIMER
THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED FINANCIAL ADVICE. INVESTORS SHOULD CONDUCT THEIR RESEARCH AND CONSULT FINANCIAL ADVISORS BEFORE MAKING INVESTMENT DECISIONS.
INTRODUCTION
NMDC LIMITED, A GOVERNMENT-OWNED MINING COMPANY UNDER THE MINISTRY OF STEEL, IS INDIA’S LARGEST IRON ORE PRODUCER. LISTED ON THE NATIONAL STOCK EXCHANGE (NSE) AND THE BOMBAY STOCK EXCHANGE (BSE), NMDC IS A PREFERRED STOCK FOR LONG-TERM INVESTORS DUE TO ITS STRONG FINANCIALS AND CONSISTENT DIVIDEND PAYOUTS.
THIS ARTICLE COVERS NMDC’S STOCK HISTORY, IPO DETAILS, BONUS AND STOCK SPLIT HISTORY, DIVIDEND HISTORY, KEY FINANCIAL METRICS, AND FUTURE GROWTH PROSPECTS.
NMDC IPO DETAILS
INCORPORATION YEAR:–
1958
IPO LISTING:-
NMDC WAS LISTED ON INDIAN STOCK EXCHANGES THROUGH GOVERNMENT DISINVESTMENTS.
STOCK EXCHANGE LISTINGS:
https://m.bseindia.com/StockReach.aspx?scripcd=526371
https://www.nseindia.com/get-quotes/equity?symbol=NMDC
BONUS ISSUE HISTORY
| ANNOUNCEMENT DATE | EX-BONUS DATE | BONUS RATIO | REMARKS |
| 27-DEC-2007 | 21-MAY-2008 | 2:1 | SHAREHOLDERS RECEIVED 2 BONUS SHARES FOR EACH SHARE HELD. |
STOCK SPLIT HISTORY
| ANNOUNCEMENT DATE | EX-SPLIT DATE | OLD FACE VALUE (₹) | NEW FACE VALUE (₹) | REMARKS |
| 27-DEC-2007 | 10-APR-2008 | 10 | 1 | EACH EXISTING SHARE WAS SPLIT INTO 10 SHARES. |
DIVIDEND HISTORY
NMDC HAS A STRONG DIVIDEND-PAYING HISTORY, REWARDING INVESTORS WITH CONSISTENT PAYOUTS. BELOW IS A SUMMARY OF NMDC’S DIVIDENDS SINCE ITS IPO:
| EX-DIVIDEND DATE | DIVIDEND AMOUNT (₹) | DIVIDEND TYPE |
| 17-SEP-2024 | 1.50 | FINAL |
| 27-FEB-2024 | 5.75 | INTERIM |
| 31-AUG-2023 | 2.85 | FINAL |
| 24-FEB-2023 | 3.75 | INTERIM |
| 17-FEB-2022 | 5.73 | INTERIM |
| 14-DEC-2021 | 9.01 | INTERIM |
| 22-MAR-2021 | 7.76 | INTERIM |
| 18-FEB-2020 | 5.29 | INTERIM |
| 22-MAR-2019 | 5.52 | INTERIM |
| 27-MAR-2018 | 4.30 | INTERIM |
| 14-SEP-2017 | 1.00 | FINAL |
| 16-MAR-2017 | 4.15 | INTERIM |
FOR A FULL DIVIDEND HISTORY, VISIT NMDC’S STOCK PAGES ON NSE AND BSE.
CURRENT MARKET PRICE & KEY FINANCIAL RATIOS
CURRENT MARKET PRICE (CMP): ₹63.06 (SUBJECT TO MARKET FLUCTUATIONS)
DIVIDEND YIELD: 2.38%
BOOK VALUE: ₹32.3 PER SHARE
PRICE-TO-EARNINGS (P/E) RATIO: 8.55
52-WEEK HIGH/LOW: ₹95.4 / ₹59.7
PROS & CONS OF INVESTING IN NMDC
PROS:
✅ HIGH DIVIDEND YIELD:–
REGULAR DIVIDENDS MAKE NMDC ATTRACTIVE FOR LONG-TERM INVESTORS.
✅ STRONG RETURN ON EQUITY (ROE):–
A 3-YEAR AVERAGE ROE OF 29% SIGNIFIES EFFICIENT CAPITAL UTILIZATION.
✅ GOVERNMENT-BACKED:–
NMDC OPERATES UNDER THE MINISTRY OF STEEL, ENSURING FINANCIAL STABILITY.
✅ MARKET LEADER:-
NMDC IS THE LARGEST IRON ORE PRODUCER IN INDIA, BENEFITING FROM INFRASTRUCTURE GROWTH.
CONS:
❌ COMMODITY PRICE VOLATILITY:-
NMDC’S PROFITABILITY DEPENDS ON IRON ORE PRICE FLUCTUATIONS.
❌ MODERATE SALES GROWTH:-
5-YEAR SALES GROWTH OF 11.9% IS LOWER COMPARED TO INDUSTRY LEADERS.
❌ REGULATORY RISKS:–
MINING COMPANIES ARE SUBJECT TO GOVERNMENT POLICIES AND ENVIRONMENTAL REGULATIONS.
FUTURE SCOPE & GROWTH PROSPECTS
WITH INDIA’S FOCUS ON INFRASTRUCTURE AND INDUSTRIAL GROWTH, NMDC IS WELL-POSITIONED TO BENEFIT FROM INCREASED DEMAND FOR MINERALS. THE COMPANY’S EXPANSION PLANS AND EXPLORATION INITIATIVES WILL DRIVE ITS FUTURE GROWTH.
THANKS.
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