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Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Buy NMDC target of Rs 130: ICICI Securities

ICICI Securities is bullish on NMDC recommended buy rating on the stock with a target price of Rs 130 in its research report dated August 28, 2020.

August 31, 2020 / 04:35 PM IST

ICICI Securities research report on NMDC


NMDC Q1FY21 EBITDA/te surprised on the back of better cost control, despite volumes declining 29% YoY to 6.28mnte. NMDC board has accorded in-principle approval to demerge the steel unit in a ‘time bound manner’. This can unlock significant value for the minority investors as hardly any value gets attributed to Rs 160bn of WIP in NMDC’s balance sheet on account of the steel plant.


Outlook


Series of price hikes (~Rs 700/te post Q1FY21) rebasing expected EBITDA/te, possible resolution of Karnataka mining remain additional tailwinds. Maintain BUY.


For all recommendations report, click here


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Broker Research
first published: Aug 28, 2020 04:22 pm
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