NMDC - Q1FY21 Result Update - ICICI Securities

NMDC reported an operationally healthy set of Q1FY21 numbers wherein topline, PAT came in line with our estimate while EBITDA came in higher than our estimate. Total operating income for the quarter was at Rs. 1938 crore, broadly in line with our estimate of Rs. 1988 crore. EBITDA margin for the quarter was at 39.0%, higher than our estimate of 35.4%. Hence, EBITDA for the quarter was at Rs. 755 crore, higher than our estimate of Rs. 704 crore. PAT came in at Rs. 533 crore, broadly in line with our estimate of Rs. 538 crore.

Valuation & Outlook

Going forward, we believe that higher outgo due to the additional premium levied is likely to adversely impact the EBITDA margin profile of NMDC. In the next three months, the final recommendation rate, which the committee decides will lead to a change in the MMDR Act. Hence, this development is also likely to have impact on other mines of NMDC also. Hence, the EBITDA margin profile of NMDC is expected to deteriorate notably. Going forward, we value the stock on an SoTP basis and arrive at a target price of Rs. 100. We maintain our HOLD recommendation on the stock.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_NMDC_Q1FY21.pdf

Shares of NMDC LTD. was last trading in BSE at Rs.98.3 as compared to the previous close of Rs. 96.65. The total number of shares traded during the day was 536219 in over 3456 trades.

The stock hit an intraday high of Rs. 99.05 and intraday low of 96. The net turnover during the day was Rs. 52315620.

Source : Equity Bulls

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