NMDC raises prices of fines and lumps - Kotak

NMDC raised iron ore prices in October 2013 by Rs. 100/ton each for fines and lumps. The increase follows similar increases by other miners in Odisha in September. We believe the price increases were driven by an improved steel pricing scenario; steel mills have taken a Rs. 1,500-2,000/ton price increase. The depreciation of the Rupee against the US Dollar also provided a floor to iron ore prices.

NMDC's valuations of 4.1X FY2014E EBITDA are attractive. We maintain our BUY rating.

Source : Equity Bulls

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