PSU Stocks Surge on Monday
๐ The country’s largest iron ore producer NMDC saw a surge in its stock on Monday (April 1). The stock rose by more than 4% in the early session. Global brokerage firm Motilal Oswal is bullish on this stock, which has seen an 85% jump in the past year. The brokerage firm has advised buying the stock, taking into consideration strong production and volume growth prospects. (NMDC Limited, Partial)
Motilal Oswal Recommends Buying Government Company NMDC’s Shares
๐ Motilal Oswal has recommended buying shares of the government company NMDC. A target price of โน260 per share has been set. The stock closed at โน212 on April 1, 2024. This means the stock could potentially offer a strong return of around 25% from its current price. The stock has delivered more than 85% return in the last year and 42% in the last six months. It has remained stable so far this year, trading at โน218 on Wednesday (April 3, 2024).
Positive Outlook for NMDC Stock
๐ Brokerage firms believe that the company’s next performance is expected from volume growth and capacity expansion. Under the recent international price revision, NMDC has reduced prices by โน200 per ton for lump ore and โน250 per ton for fines. This short-term price cut could impact growth. Given the strong volume outlook and robust demand in the steel sector, the stock is advised to be bought at a target price of โน260 (6x FY26E EV/EBITDA).
Disclaimer: This is News Coverage with Opinions of Experts and Should Not Be Taken as Direct Market Buying Tip. Market is always subject to risk. We recommend taking our content as research before investing.
