NMDC Limted - Fundamental story remains intact - Emkay

Reco: BUY
CMP: Rs 104
Target Price: Rs 165

- The company guides for a volume of 30- 32 mt in FY14, higher than earlier indication of 27- 28 mt. Karnataka volume is pegged at 9- 10 mtpa with 4.5 mt from Kumaraswamy

- Demand scenario is good with better lump offtake recently; company indicates that there may not be significant cut in prices further and international prices have lesser influence

- Dividend pay out likely to be at least 40% with a possibility of going up; employee cost revision is due since April 1, 2012 but the company has been providing for it every quarter

- Believe, the fundamental story is intact and FY14 volume guidance should boost confidence; Maintain our estimates and retain Buy with TP at Rs 165 (5.5xFY15EV/ EBITDA)

Source : Equity Bulls

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