Why is NMDC Steel falling/rising?

Aug 25 2025 11:21 PM IST
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As of 25-Aug, NMDC Steel Ltd's stock price is at 39.09, showing a slight increase but a negative trend over the past week and year-to-date. Despite recent gains, the stock's long-term outlook is concerning due to poor fundamentals and high debt levels, making it a risky investment.
As of 25-Aug, NMDC Steel Ltd's stock price is currently at 39.09, reflecting an increase of 0.31 or 0.8%. The stock has shown a trend reversal, gaining after two consecutive days of decline, and has outperformed its sector by 0.29%. However, the stock's performance over the past week has been negative, with a decline of 1.88%, while it has seen a modest increase of 1.88% over the past month. Despite positive results in net sales growth and strong quarterly performance, the stock has a concerning long-term outlook, with a return on capital employed of 0% and a high debt to EBITDA ratio, which raises questions about its ability to sustain growth.

In the broader market context, NMDC Steel's recent performance contrasts with the Sensex, which has gained 0.45% over the past week. The stock's year-to-date performance is particularly troubling, showing a decline of 9.45% compared to the Sensex's increase of 4.48%. This underperformance is compounded by a significant drop in investor participation, with delivery volume falling by 48.62% against the five-day average. While high institutional holdings may provide some stability, the overall weak long-term fundamentals and negative EBITDA position the stock as risky, contributing to its recent price movements.
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