NMDC Ltd (Q2 FY14) - Market Performer - IIFL

CMP Rs138, Target Rs145, Upside 5.1%

- NMDC's topline of Rs24.8bn was marginally higher than our estimate, boosted by an increase in the share of exports

- An increase in exports arrested the decline in ASPs at 3.3% qoq. ASP for the quarter stood at Rs3,815/ton as the company had taken price cuts during the quarter

- Sales volume increased by 11% yoy to 6.5mn tons; Production too remained strong at 10.4% yoy to 5.9mn tons

- NMDC exported 0.7mn tons of iron ore against 0.4mn tons in Q2 FY13 and 0.5mn tons in Q1 FY14

- NMDC has increased prices of lumps and fines in October for the first time in the last one year

- Downgrade to Market Performer after the recent run up in the stock, while maintaining our 9-month price target at Rs145.

Source : Equity Bulls

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