NMDC Q1 Review - Earnings Outlook Remains Strong: Motilal Oswal
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Motilal Oswal Report
NMDC Ltd.’s result reflects strong iron ore pricing and volume growth as Ebitda jumped 4.5 times YoY to Rs 42.1 billion.
Ebitda/tonne, at Rs 4,455 (up 2.7 times YoY), was the highest ever, despite a levy of 22.5% premium on iron ore sales.
We broadly maintain our FY22E/FY23E Ebitda forecasts.
We remain positive on NMDC, given its strong earnings outlook driven by volume growth, and better iron ore prices.
We expect the steel plant de-merger to unlock value for shareholders, given the favorable outlook for the steel industry.
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