Navratna PSU metal giant stock NMDC will be in focus this week for two reasons. Firstly, NMDC has decided against its earlier proposal of announcing new interim dividend for FY26. Secondly, the company has raised the price of iron ore with effect from November 15. Overall, NMDC closed last week’s session on a positive note.
Brokerages have recommended ACCUMULATE on the stock.
NMDC Interim Dividend:
Earlier, NMDC informed investors that on November 14, its board of directors will consider the announcement of interim dividend for FY26.
However, last week on Friday, NMDC said, “This is to inform that the Board of Directors of the Company, in its meeting held on Friday, 14th November 2025, did not declare any Interim Dividend on the equity shares of the Company.”
In past 14 months, NMDC has already delivered two dividends and bonus issue.
For FY25, NMDC paid interim dividend of Rs 2.30 per share with record date on March 21, 2025, and final dividend of Re 1 per share with record date on August 14, 2025. Together, it paid about Rs 3.30 per share in that fiscal.
However, the dividend payout in FY25 was lower compared to cumulative dividend payout of Rs 7.25 per share in FY24.
Apart from this, NMDC already rewarded investors with bonus issue.
NMDC Bonus Issue:
As per the regulatory filing, NMDC turned ex-date for bonus issue of 2:1 on December 27, 2024. This means that NMDC allotted 2 free shares to eligible shareholders on their existing 1 per share.
NMDC Iron Ore Price Hike:
As per the regulatory filing, NMDC revised the prices of Baila Lump (65.5%, 10-40mm) to Rs 5,600 per ton with effect from November 15, 2025. Also, the price of Baila Fines (64%, -10 mm) stood at Rs 4,750 per ton.
The price of iron ore is increased by Rs 50 per tonne to Baila lump. However, the price of Baila Fines is unchanged.
NMDC Share Price:
On November 14, NMDC share price closed at Rs 76.59 apiece, down by 1.05% with market cap of Rs 67,336.53 crore. Overall, NMDC ended last week’s performance with nearly 1% upside. Year-to-date, the stock zoomed by nearly 16%.
The stock’s 52-week high and low is at Rs 82.72 apiece and Rs 59.56 apiece respectively. Its price-to-equity ratio is at 9.48x, while return on equity is at 25.19%.
BUY/SELL/Accumulate NMDC?
In a note, Tushar Chaudhari, Research Analyst, PL Capital said, “NMDC reported a tad weaker than expected consolidated operating performance in Q2FY26 on lower realization. Volumes grew 10% YoY to 10.73mt in seasonally weak quarter while average realization declined 7.6% QoQ, due to price cuts undertaken for lump and fines during the beginning of the quarter and lower premium on a/c of product mix deterioration.
Also, they explained that lower NSR coupled with higher purchase of finished products and elevated other expenses during monsoon led to EBITDA/t of Rs1,858 (PLe of Rs1,935). Receivables from RINL/NSL continue to remain elevated. NMDC took a price cut Oct’25 which would weigh on H2FY26 earnings though there is an expectation of better demand as steel consumption picks up post monsoon.”
The analysts assume moderate increase in ore prices from Q4 as domestic demand improves in H2FY26, however with global ore supply expected to increase, NMDC’s ability of taking price hikes would be tested. On volume front, mgmt. aims to utilize maximum EC limits to deliver 55mt in FY26 which looks ambitious. Things to watch out for: 1) ramp up of volumes in H2FY26, 2) Planned EC additions and other capacities, 3) Karnataka bill status, and 4) ability to take price hikes.
Accordingly, they added, “We tweak our estimates for FY26/27/28E by -3%/2%/-3% on lower pricing assumptions. We maintain 50/55/60mt volumes for FY26/27/28E and expect NMDC to deliver Revenue/EBITDA/PAT CAGR of 16%/16%/14% respectively. At CMP, the stock is trading at 4.5x/4.2x EV of FY27/28E EBITDA. Maintain ‘Accumulate’ with a revised TP of Rs86 (earlier Rs87) valuing it at multiple of 5x EV of Sep’27E EBITDA.”