Navratna PSU to mull bonus share issuance after 16 years; have the stock in your portfolio?

State-run industrial minerals company NMDC will announce its quarterly results on Monday (November 11). Along side the company shall also mull its second bonus share issuance after 16 years.

The company on November 5 (Tuesday) said that it its board meeting is scheduled on 11/11/2024 ,inter alia, to consider and approve the Unaudited Financial Results (Standalone and Consolidated) of the company for quarter ended 30th September 2024 and a proposal for issue of bonus shares.

Earlier as per the details on the BSE, the mining major announced its bonus share in 2008 in the ratio of 2:1 and in respect of the same the stock turned ex-bonus on May 21, while the record date was May 22.

After rising for two days in a row, on the bonus share issue plan, the stock has been trending in the downward trajectory. Last in trade on Monday at around 12 pm, shares of the company traded with a cut of 1 per cent at Rs 233.5 per share.

The company's iron ore sales in October came in at 4.03 MT, registering a growth of 17.15 per cent as compared to 3.44 MT recorded in the same period a year ago. Sequentially, the PSU miner's iron ore production jumped by 33.88 per cent  and iron ore sales grew by 13.8 per cent in October 2024.

NMDC is India's single largest iron ore producer, presently producing about 35 million tonnes of iron ore from 3 fully mechanized mines, two located in Chhattisgarh and one in Karnataka. As of June 2024, the Government of India held 60.79% stake in the firm.

NMDC Q2 earnings estimates

Zee Business research estimates the company's standalone revenue to soar 16 per cent year-on-year to Rs 4,664 crore, while it was Rs 4,014 crore in the same period a year-ago. Analysts expect a decent quarter for the company, however, on a quarterly basis it will be lower. Profit after tax at the company is seen to edge higher by 38 per cent on-year to Rs 1,415 crore, in comparison to Rs 1,028 crore during the same period in the previous year.

On the operational front, EBITDA margin is seen rising to 6 per cent, up 600 bps from 30 per cent to 36 per cent in the Q2 quarter.

NMDC's Q1FY25 earnings

The state-owned miner's net profit (from continuing operations) jumped 20.25 per cent to Rs 1,984.19 crore in Q1 FY25 as against Rs 1,650.07 crore posted in Q1 FY24. Revenue from operations fell marginally to 5,377.80 crore in the June quarter as compared with Rs 5,394.66 crore posted in Q1 FY24.

NMDC share price performamce

The stock over the last one year has scaled higher by 38 per cent while the Nifty index has gained over 24 per cent during the same time.