ScoreWhy is NMDC Steel Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.04 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.04 times
- The company has been able to generate a Return on Equity (avg) of 0.22% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Net Sales has grown by an annual rate of 111.50% and Operating profit at 49.65%
3
The company has declared Positive results for the last 6 consecutive quarters
- PBT LESS OI(Q) At Rs 31.06 cr has Grown at 1315.7% (vs previous 4Q average)
- NET SALES(9M) At Rs 10,548.53 cr has Grown at 26.74%
- PAT(9M) Higher at Rs 198.45 Cr
4
With ROCE of 2.8, it has a Fair valuation with a 1.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 22.45%, its profits have risen by 102% ; the PEG ratio of the company is 1.7
5
High Institutional Holdings at 21.27%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.56% over the previous quarter.
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NMDC Steel should be less than 10%
- Overall Portfolio exposure to Ferrous Metals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NMDC Steel for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
NMDC Steel
22.13%
0.55
40.17%
Sensex
-3.57%
-0.27
13.41%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
111.50%
EBIT Growth (5y)
49.65%
EBIT to Interest (avg)
-2.50
Debt to EBITDA (avg)
1,464.17
Net Debt to Equity (avg)
0.29
Sales to Capital Employed (avg)
0.39
Tax Ratio
26.34%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
21.27%
ROCE (avg)
-9.43%
ROE (avg)
0.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
172
Industry P/E
25
Price to Book Value
1.09
EV to EBIT
37.60
EV to EBITDA
12.05
EV to Capital Employed
1.07
EV to Sales
1.31
PEG Ratio
1.68
Dividend Yield
NA
ROCE (Latest)
2.80%
ROE (Latest)
0.64%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
PBT LESS OI(Q)
At Rs 31.06 cr has Grown at 1315.7% (vs previous 4Q average
NET SALES(9M)
At Rs 10,548.53 cr has Grown at 26.74%
PAT(9M)
Higher at Rs 198.45 Cr
-3What is not working for the Company
INTEREST(Q)
At Rs 126.38 cr has Grown at 31.07%
NON-OPERATING INCOME(Q)
is 58.00 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for NMDC Steel
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 31.06 cr has Grown at 1315.7% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs -2.55 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 50.51 cr has Grown at 244.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 14.68 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Latest six months
At Rs 7,540.84 cr has Grown at 21.56%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for NMDC Steel
Interest - Quarterly
At Rs 126.38 cr has Grown at 31.07%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 58.00 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Non Operating Income - Quarterly
Highest at Rs 42.89 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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