NMDC reports sales volumes for 3QFY2014 - Angel Broking

NMDC has reported 39.1% yoy growth in sales volumes at 7.4mn tonnes (above our estimate of 7.2mn tonnes) for 3QFY2014. Strong growth in dispatches indicates increase in production from some of the secondary steel-makers which were shut or running at low capacity utilization over the past few quarters on the back of lower product prices. However, effective September, sponge/steel prices have continued to rise. We now expect NMDC to surpass our FY2014 annual sales volumes estimates of 28.6m tonnes. However, until it reports 3QFY2014 results, we maintain our Accumulate rating on the stock with a target price of Rs. 151.

Source : Equity Bulls

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