NMDC Update

Reasons for buying:

Buy PE was reasonable at 4.56 and below 10 years PE median of 9.01.

Earnings have increased since 2017 but earnings went nowhere from 2012.

Return on equity is good at 21.81%.

The market cap of the company is ₹41,907.66cr.

The debt of the company is ₹1,994.47cr with ₹5,861.82cr in cash.

Buy date: 25-Oct-2021

Qty: 71 Buy Price: ₹139 Buy EPS: ₹30.48 Buy PE: 4.56

New demerger price: ₹59.37

Buy date: 07-Jun-2022

Qty: 80 Buy Price: ₹124 Buy EPS: ₹32 Buy PE: 3.875

New demerger price: ₹52.96

Buy date: 07-Jul-2022

Qty: 93 Buy Price: ₹139 Buy EPS: ₹32 Buy PE: 3.35

New demerger price: ₹45.91

Name of Company Percentage of Cost of Acquisition of equity shares in Demerged and Resulting Company NMDC Limited 42.71% (Demerged Company) NMDC Steel limited 57.29% (Resulting Company) Total 100.00% 

The price of the stock is up about 2.88% from my buy price.

The company is involved in the exploration of iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, etc.