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52-Week High: ₹75.17
52-Week Low: ₹59.53
Current Market Price (CMP): ₹72.50 (approx.)
Buying Zone: ₹72–₹74
Stop-Loss: Below ₹65
Target (12–15 months): ₹120–₹150

Technical Outlook: Timing and Patterns

1. Proximity to Strong Support (~₹60): NMDC is trading significantly above its strong support near ₹60, which has acted as a reliable floor. That base may offer a launching pad for a substantial upside run.
2. Trendline Break and Sustain: On the weekly chart, NMDC had been rising along an ascending trendline. Recently, it has broken above this line and is sustaining higher levels—indicating strength and signaling potential momentum continuation.
3. Pole-and-Flag Breakout: A classic pole-and-flag pattern is visible: after a vertical rise (“pole”), the stock consolidated in a tight range (“flag”). A breakout above the flag with sustained price levels now points to renewed bull interest, enhancing confidence for new positions.

Company Snapshot & Fundamentals

Overview & Market Position
NMDC Ltd (National Mineral Development Corporation) is India’s largest iron ore producer and a Navratna PSU under the Ministry of Steel. It operates mechanized mines in Chhattisgarh and Karnataka and the only mechanized diamond mine in the country (Panna, MP) WikipediaGroww.

Market Cap & Valuation

• Market cap stands between ₹62,000–₹63,800 crore ScreenerMarketsMojoMoneycontrolDhan.
• NMDC’s trailing P/E ratio is low at ~9.5×, well below sector average (~12–15×) MoneycontrolUnivestGuruFocusDhan.
• Price-to-Book (P/B) ratio is around 2.1×, considered modest relative to peers Finology TickerGrowwDhanValue Research Online.

Profitability & Margins
NMDC’s profitability is strong:

• Net Profit Margin: ~28%
• Return on Equity (ROE): ~23%
• Return on Capital Employed (ROCE): ~30% Moneycontrol.

Financial Health

• Debt-to-Equity ratio is low at 0.13×, indicating minimal reliance on debt The Economic TimesMoneycontrol.
• Current ratio is healthy at ~2.4×, underscoring strong liquidity The Economic TimesMoneycontrol.

Recent Performance

• In FY 2024–25, NMDC reported a 17.4% rise in consolidated net profit to ₹6,538.8 crore, while revenue increased to ₹25,498.8 crore The Economic Times.

Shareholding Pattern

• Promoter (Government of India) holds ~60.79% equity Value Research OnlineWikipedia.
• Institutional holdings: FIIs about 12%, DIIs around 14.5%, and public & others (~10–11%) Dhan.

Strategic Investment Thesis

1. Compelling Technical Confluence

The ₹72–₹74 zone offers a favorable entry point: just above sturdy support at ₹60, following a trendline breakout, and confirming the classic bullish pole-and-flag breakout—all pointing toward strong upside potential.

2. Undervalued with Solid Earnings

With a P/E under 10× and P/B near 2×, NMDC offers value for a fundamentally strong mining company. Profits are robust, debt is low, and margins healthy.

3. Strong Government Backing & Liquidity

Backed by the Indian government as a Navratna PSU, NMDC benefits from policy support and capital stability—a valuable edge in cyclical industries.

4. Growth Delivery

Double-digit profit growth, improving revenue, strong cash generation, and low leverage suggest NMDC is on solid growth footing.

Investment Setup

• Buy Zone: ₹72–₹74
• Stop-Loss: Below ₹65
• Target: ₹120–₹150 over 12–15 months, implying upside of ~66%–100% from CMP.
• Risk Management: Use disciplined position sizing and monitor global crude/steel prices which influence iron ore markets.

Summary Table