NMDC Q4 Review - Prices Peaked; Steel Plant Demerger Delayed: Centrum Broking

Loaders fill railcar wagons with coal at a depot, operated in Jharkhand, India. (Photographer: Sanjit Das/Bloomberg)

NMDC Q4 Review - Prices Peaked; Steel Plant Demerger Delayed: Centrum Broking

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Centrum Broking Report

NMDC Ltd. reported better than expected Ebitda of Rs 42.4 billion for Q4 FY21, up 184% YoY (our estimate: Rs 39.2 billion) due to higher blended iron ore realisation.

We believe iron ore prices have peaked out and should fall in Q2 FY22 with weakening long steel prices.

The demerger of steel plant is delayed and is now expected by FY22-end.

We increase our Ebitda estimates by 80% for FY22 and by 17% for FY23 to factor in the price hikes in Q1 FY22.

We roll over our valuation to FY23E earnings.

Click on the attachment to read the full report:

Centrum NMDC - Q4FY21 Result Update .pdf


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