NMDC — An improved outlook for the near term
High dividend yield and de-merger of the steel plant to support valuation going forward
August 31, 2020 / 04:32 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
The June quarter results of NMDC (CMP: Rs 108; Market capitalisation: Rs 32,915 crore) were in line with Street expectations. Amid the Covid-19 pandemic, we had recommended the NMDC stock on March 25 as a secured high dividend yield play at a price of Rs 64. The stock has generated a return of 69 per cent, outperforming the Nifty return of 49 per cent, over this period.
We continue to like NMDC and recommend that investors should accumulate this...