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