Shares of public-owned NMDC shares gained in trade on Thursday, May 29, after brokerages and experts rolled out their reviews of the Navratna PSU's earnings show for the quarter ended March of the financial year 2024-2025.
For Q4FY25, NMDC's consolidated net profit declined 21.8 percent quarter-on-quarter to Rs 1,483.18 crore, down from Rs 1,896.66 crore in the December quarter (Q3FY25). However, revenue from operations rose 6.65 percent sequentially to Rs 7,004.59 crore.
On a year-on-year basis, net profit rose 4.77 percent, while revenue increased 7.94 percent, largely driven by strong growth in pellet sales. Profit before tax declined marginally by 0.89 percent year-on-year to Rs 2,337.88 crore.
In the previous session, NMDC shares settled lower by nearly three percent at Rs 70.78 per share. However, despite the miss in earnings, brokerages remained bullish on the iron ore player.
At 9.16 am, the firm's shares were quoting Rs 71.45, higher by 0.8 percent on the NSE.
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In 4QFY25, volume growth picked up after sluggishness in the early part of the year. NMDC implemented regular price hikes in FY25, which offset the adverse volume impact, translating into a healthy operating profit, said domestic brokerage Motilal Oswal.
"We expect that going forward, a healthy volume pick-up and stable realization will drive healthy operating growth. Therefore, we largely maintained our estimates for FY26-27. NMDC has planned a capex for various evacuation and capacity enhancement projects, which are expected to improve the product mix and increase its production capacity to ~100mt by FY29-30."
The brokerage maintained its bullish buy rating, with a target price of Rs 83 per share, indicating a 17 percent upside from current levels.
Nuvama Institutional Equities expects volume growth to resume as the strike for wage hikes disrupted volumes in Q1FY25. Besides, price hike of Rs 440/tonne in May 2025 should collectively drive EBITDA/t for the quarter.
The broking house also maintained its 'buy' rating, with a price target of Rs 85 per share, implying an upside of 20 percent.
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