NMDC - Q2 FY2014 Results - First Cut - Microsec

NMDC Ltd announced its Q2FY14 results on 24th October, 2013.

The company beats our as well as consensus estimates on revenue front by 7.56% and 4.12%. The net sales arrived at INR2478.14 crore, which was down by 5.12% and 13.63% on YoY and QoQ basis. The sales volume was up by 10%, but realization were down by 13.74% on YoY basis due to company's frequent iron ore price cuts. On QoQ basis, the sales volume was down by 10.61% due to monsoon, along with realizations falling by 3.38%. The EBITDA for the quarter was INR1493.61 crore, which was down by 22.81% and 21.60% on YoY and QoQ basis. The company posted net profit of INR1318.30 crore, which was also down by 21.47% and 16.15% on YoY and QoQ basis.

At the CMP of INR140 per share, the stock is trading at P/E of 9.82x its TTM EPS of INR14.25 and EV/EBITDA of 5.27x its TTM EBITDA of INR6539.85 crore. Hence, with iron ore volumes to improve further due to commissioning of new capacities Q4FY14 onwards and stability in prices of iron ore, we recommend NMDC a "BUY" for long term investment.

Source : Equity Bulls

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