NSE Symbol: NMDC | BSE Code: 526371
NMDC Share Price Performance in 2018
NMDC Stock Trends in 2018:
On January 2, 2018, the NMDC share price was Rs.141.50 on the NSE. Over the week, the price soared steadily to cross Rs.150 and reached its 52-week high of Rs.162.70. After reaching that level, the rate fell to a downward trajectory and lost almost 10% by the month end. The closing share price on 31st January 2018 was Rs.140.
The prices plummeted further in February and March due to the turbulence in the international markets. The benchmark stock market indices - BSE SENSEX and NIFTY 50 on which NMDC stocks are listed, also dropped down points in the same duration. The NMDC Limited share price at the beginning of February was Rs.140, and by the month end, it was at Rs.130. The shares continued to trend in their bearish behavior in March and dipped roughly by 10% more. On March 28, the closing share price of the scrip was at Rs.118.55.
The prices recovered a few in the month of April but the profits made in this month were marginal. The performance by the NMDC Limited stocks was not impressive. The scrip at the month end was at Rs.125.
May turned out to be a disappointment for the investors. Instead of picking the upward path, the prices plummeted once again. The National Mineral Development Corporation share price was traded in the Rs.110 range for the entire month. In comparison to April, the scrip, in May, lost roughly 5% and closed at Rs.117.45. Since the beginning of the year, the NMDC Limited scrip has fallen by approximately 30%.
NMDC Share Price Performance in 2016-17
2017 started on a terrific note for the investors. The markets were eager to recover the previous losses. The NMDC share price, at the beginning of January, was at Rs.129.50. The same scrip by the month end had inclined to levels above Rs.145. In February, the share price plummeted slightly, but it managed to remain above the Rs.140 level.
The first week of March showed a bear run which continued till July. An interim dividend of 415% was declared in mid-March, but that didn’t do much to keep the motivation of investors. The price continued to drop and at the start of April, the shares were trading between levels of Rs.120 - Rs.130. The downward trend continued through the entire month of May with the price on May 31, 2017, being at Rs.110.65. By the June end, the rate had declined into the Rs.100 range.
The trend changed a bit in July when the prices started rising again. The NMDC Limited share price by the month end had increased to cross the Rs.120 level again and recovered the previous losses. The shares attempted to be stable at this level in August as the price cautiously remained above Rs.120 mark.
The National Mineral Development Corporation share price went up dramatically in September which was driven by developments in the company. Over the course of the week, the scrip gained 10% and soared to be traded at Rs.132 mark. However, the scrip showed the downward side as quickly as it was made in the same month. By the late September, the shares once again came under the Rs.110 bracket.
In the Q4 of the year, which is October to December, the NMDC stocks made some decent gains. The prices attempted to stabilize in this period, and the scrip continued to recuperate for the previous losses. The closing NMDC share price at the end of the year was at Rs.137.80 on the National Stock Exchange.
The National Mineral Development Corporation Limited(NMDCL) is an enterprise which is owned by GOI. The Ministry of Steel administers it. The company is primarily indulged in the exploration and extraction of iron from the iron ores in the Bellary, Bacheli, and Kirandul regions. It actively involved in the exploration of minerals such as phosphate, diamond, tungsten, copper, rock graphite as well. It is the largest iron ore producer of India with a capacity of up to 30 million tonnes. In 2008, the NMDC was recognized as a Navratna Public Sector Enterprise due to its spectacular performance over the years.
History of NMDC
The National Mineral Development Corporation was founded in 1958 under the Companies Act. The NMDC attained a deemed public listed company status in 1975 and in 1993 the company was wholly shifted into a public company. In the 1960s the company commenced the mining and production from the iron ore deposits at Bailadila. Over the years, it did the exploration of other minerals as well.
Why invest in National Mineral Development Corporation Stocks?
The NMDC Limited, for the year 2017-18, in its financial has recorded excellent numbers. The revenue and profit from the operations have been improved by roughly 30% over the year. The boost of profit came in after the glitches on the transportation front, particularly railway, were resolved in December. As a result, sales are expected to achieve their previous levels in the upcoming quarters.
Furthermore, the company has soared the prices of lump iron ores. Therefore, the favorable macro trends and the increased rates are expected to aid in reporting healthy numbers. The prospects of the company are also improving as the organization is investing heavily in its upcoming steel plant in Nagarnar. This steel plant is expected to increase the company capacity by three metric tonnes/annum.
Considering the NMDC stock performance, the scrip has delivered returns of over 40% since the beginning of 2016. However, as of October 2018, the shares are on a bear trend, which makes it an ideal time to buy. In comparison to its competitors like Coal India and Vedanta, the NMDC Limited is ranked at the third place regarding profit making.
If you want to invest in NMDC stocks for a long time, then it is a likely prospect. Many analysts are getting bullish on this scrip. However, it is strongly advised that you do your research before investing. Also, you can look into the mutual funds' houses having holdings in this particular stock.