NMDC is also one of the highest dividend paying stocks, and is one of the reason I have it in my stock portfolio. Investors have been closely monitoring NMDC, which is among the largest iron ore producers in India, due to its impressive share price growth in recent years.
In 2023, it demerged its Steel business (NMDC Steel) from its core, NMDC, and still the stock is trading almost at a similar price range before the demerge. Investors are considering whether NMDC is a suitable stock investment, and what its share price outlook may be over the next decade.
NMDC received recognition at the Governance Now 9th PSU Awards, indicating its progress in the industry, but what are the implications for its investors? This article examines NMDC’s performance, future prospects, and potential share price targets for the 2023-2030 period.
As of October 12, NMDC is trading at Rs. 158, with a marketcap of Rs. 46,290 Crore and a PE ratio of 8.9. NMDC is a cyclic stock that revolves around one region.
Latest news about NMDC
- Iron ore shipments from NMDC’s Bailadila mine have recommenced, delivering supply to the RINL plant located in Andhra.
- NMDC increases the prices of iron ore by ₹250 per metric ton.
- NMDC wins in the prestigious ASSOCHAM Awards, claiming top honors for its remarkable achievements in Mineral Development and Employer Brand.
- Following its exceptional performance in the June quarter, NMDC witnesses a substantial surge of nearly 3% in its stock value.
You can buy NMDC shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| October 2023 | ₹165.00 | ₹142.00 |
| November 2023 | ₹167.76 | ₹147.06 |
| December 2023 | ₹169.10 | ₹151.91 |
In October 2023, the maximum price target for one NMDC share is expected to be Rs.165.00, while the minimum price target is predicted to be Rs. 142.14.
The bullish trend is expected to continue through November and December, with the maximum price reaching Rs 167.76 and Rs. 169.10, respectively.
| When | Maximum Price |
Minimum Price |
| January 2024 | ₹170.51 | ₹148.27 |
| February 2024 | ₹173.99 | ₹151.30 |
| March 2024 | ₹177.54 | ₹154.39 |
| April 2024 | ₹172.37 | ₹149.89 |
| May 2024 | ₹169.83 | ₹147.67 |
| June 2024 | ₹175.94 | ₹152.99 |
| July 2024 | ₹174.18 | ₹151.46 |
| August 2024 | ₹181.15 | ₹157.52 |
| September 2024 | ₹188.39 | ₹163.82 |
| October 2024 | ₹184.70 | ₹160.61 |
| November 2024 | ₹190.24 | ₹165.43 |
| December 2024 | ₹195.00 | ₹169.56 |
According to the NMDC’s projected share price target for 2024, the stock price is expected to continue its upward trajectory from the previous year. The average target price for January 2024 is Rs 125.87, with the minimum projected at Rs 109.45. The stock price is expected to remain in an uptrend through February and March, with the maximum price target reaching Rs 136.82 and Rs 138.20, respectively.
The projected target prices for April and May are Rs 125.63 and Rs 104.70, respectively, with the stock price experiencing some volatility in these months. The maximum and minimum projected prices for 2024 are Rs 155.41 and Rs 109.45, respectively, with an overall upside potential of 79.36%.
Based on these projections, NMDC’s share price appears to be a strong buy recommendation for investors looking to capitalize on the iron and steel industry’s growth potential.
|
NMDC Share Price
Target 2025 |
Maximum Price | Minimum Price |
| January 2025 | ₹198.90 | ₹153.00 |
| February 2025 | ₹193.92 | ₹149.17 |
| March 2025 | ₹186.64 | ₹143.57 |
| April 2025 | ₹190.38 | ₹146.44 |
| May 2025 | ₹184.83 | ₹142.18 |
| June 2025 | ₹176.87 | ₹136.06 |
| July 2025 | ₹168.45 | ₹129.58 |
| August 2025 | ₹163.40 | ₹125.69 |
| September 2025 | ₹157.87 | ₹121.44 |
| October 2025 | ₹153.87 | ₹118.36 |
| November 2025 | ₹150.12 | ₹115.48 |
| December 2025 | ₹142.97 | ₹129.98 |
2025 could be a bullish year for NMDC. The maximum price target for January 2025 is ₹158.52, with the minimum price target at ₹121.94. The prices are expected to fluctuate throughout the year, with a potential for an uptrend during March and November 2025. Investors who hold on to their shares until the end of the year could see a return on their investment, with the maximum price target for December 2025 at ₹188.52. However, as with any investment, there is always a degree of risk involved, and investors should do their research and consider their options carefully before making any decisions.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹197.94 | ₹138.56 |
| 2027 | ₹217.74 | ₹152.41 |
| 2028 | ₹304.83 | ₹152.41 |
| 2029 | ₹263.92 | ₹131.96 |
| 2030 | ₹316.71 | ₹221.69 |
NMDC’s share price is expected to experience some fluctuations in the coming years. In 2026, the share price is projected to have a maximum target of ₹197.94 and a minimum target of ₹138.56. This indicates a potential for financial gain or loss for investors, depending on their buying and selling decisions.
Moving forward to 2027, the maximum target price is expected to be ₹217.74 and the minimum target price is estimated to be ₹152.41. This suggests that the share price may experience some volatility during this year. However, the maximum target price is expected to increase significantly in 2028 to ₹304.83, indicating a potential for significant financial gains for investors. The minimum target price in 2028 is projected to be ₹152.41.
However, in 2029, the share price may experience a downfall, with a maximum target price of ₹263.92 and a minimum target price of ₹131.96. By the year 2023, it is projected that the maximum target price will reach ₹316.71, indicating a rising trend. Conversely, the minimum target price is expected to be ₹221.69.This suggests a strong potential for financial gain for investors who hold onto their shares.
Financial Condition of NMDC: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (Crore INR) |
12,153 | 11,699 | 15,370 | 25,882 | 17,667 |
| Expenses (Crore INR) |
5,228 | 5,697 | 6,580 | 13,297 | 11,614 |
| Operating Profit (Crore INR) |
6,925 | 6,002 | 8,790 | 12,585 | 6,053 |
| OPM % (Crore INR) |
57% | 51% | 57% | 49% | 34% |
| Other Income (Crore INR) |
588 | 417 | 351 | 716 | 2,005 |
| Interest (Crore INR) |
40 | 10 | 17 | 39 | 75 |
| Depreciation (Crore INR) |
279 | 295 | 229 | 288 | 336 |
| Profit Before Tax (Crore INR) |
7,194 | 6,114 | 8,896 | 12,974 | 7,646 |
| Tax % | 36% | 41% | 30% | 28% | 28% |
| Net Profit (Crore INR) |
4,617 | 3,573 | 6,277 | 9,380 | 5,603 |
| EPS (Rs) | 15.08 | 11.67 | 21.42 | 32.00 | 19.11 |
| Dividend Payout % | 37% | 45% | 36% | 46% | 35% |
NMDC’s financial statement shows significant growth in revenue and profitability over the last five years. The company’s sales have grown from ₹12,153 crore in 2019 to ₹17,667 crore in 2023, representing an impressive percentage growth of more than 45%.
Similarly, the company’s net profit has also increased from ₹4,617 crore in 2019 to ₹5,603 crore in 2023, showcasing a percentage growth of more than 20%. The company’s operating profit margin (OPM) has remained healthy, averaging around 50% over the past five years, with a maximum of 57% in 2021. However, in terms of dividend payouts, the company has experienced a slight decrease in its payout percentage, reaching a high of 46% in 2022.
NMDC has demonstrated steady revenue and profit growth over the past five years, with healthy operating margins and a consistent dividend payout percentage. The company’s financial performance indicates a positive outlook for the future, with potential for further growth and financial gains.
ICICI Direct is recommending that investors purchase shares of NMDC with a target price of Rs 180 (13th September).
Motilal Oswal has given a buy rating to NMDC with a price prediction of Rs 155.
Also read:
FAQS
How much dividend does NMDC pay?
NMDC pays dividends ranging from 20% to 53% of its earnings, with the dividend payout percentage fluctuating over the years.
It is anticipated that NMDC per share price will increase to ₹169.10 by the end of 2023.
The maximum share price target of NMDC for 2025 might be around ₹198.90, while the minimum being ₹115.48.
Can NMDC touch 600 INR by 2030?
While it is challenging to make a definitive prediction about NMDC reaching ₹600 by 2030, the company has demonstrated favorable growth in recent years.
The per share price of NMDC might reach around ₹316.71 by the end of 2030.
Conclusion
In conclusion, NMDC has demonstrated a consistent upward trend in its revenue, profit, and net profit over the past five years. During the period from 2019 to 2023, the company’s revenue experienced a solid growth rate of around 45%, while its net profit increased by approximately 21%. Additionally, NMDC’s profit before tax displayed a compound annual growth rate of 13.3% throughout this period.
These statistics reflect the company’s consistent performance and its potential to generate favorable financial outcomes for its stakeholders. Although predicting the future is uncertain, NMDC’s historical growth indicates a strong foundation and a stable financial position. Consequently, it presents an appealing long-term investment opportunity for individuals seeking financial returns.
NMDC as a steel company is almost debt free and has an amazing 3 years ROE (return on equity) of 27.9%
Disclaimer: I personally hold NMDC shares in my portfolio, and this article on ‘NMDC Share Price Prediction 2023 to 2030’ is my opinion, and not a financial advice. Please consult a financial advisor before investing. Also, it’s important to note that these targets are only estimates and are subject to change based on various factors such as market conditions, company performance, and global events. Therefore, investors should conduct thorough research and analysis before making any investment decisions.
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