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NMDC Limited (NMDC) Fair Value & Analysis

Basic Materials · IN · Market cap ₹739B (≈ $7.8B) · ISIN INE584A01023

What is NMDC Limited really worth?

NL NMDC Limited NMDC · NSE
Price₹84.70
Fair Value₹112.98
Upside+33.4%
Quality62/100

A solid business, trading 25% below our fair value of ₹112.98.

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Strengths

Highly profitable · 23.2% net margin
Low debt · generates free cash flow
Ranks above peers (12/14)
Wide moat 77/100

Risks

!Mixed Growth (revenue 5y +15.8 %/yr)
!Evidence only low, so the estimate is less certain

For context

·4.13% dividend yield
Evidence: Low Range ₹71.42 – ₹163.71

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from ₹116.23 to ₹112.98 (−2.8%) since Jul 16, 2026. Share price −1.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹71.42 to ₹163.71) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹96.04 ₹21.70 Fair Value ₹112.98 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹21.70 – ₹96.04 · fair‑value band ₹71.42 – ₹163.71 · the ₹84.70 price screens below the ₹112.98 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

NMDC Limited (NMDC) currently trades at ₹84.70, while our model-based Fair Value estimate is ₹112.98, implying the stock looks roughly 25.0% undervalued today. The Quality Score stands at 62/100 (solid quality), in the Basic Materials sector. Bull case: the Growth Earnings group reads highest at a median of ₹165.42 per share, and 20 of the 26 models we run sit above the ₹84.70 price. Bear case: the Asset-Based group reads lowest at ₹25.96, and 6 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, NMDC Limited generated revenue of ₹321B at a net margin of 23.2%. Revenue grew 61.9% year over year. It earns a return on equity of 23.4%. The balance sheet holds a net cash position of ₹49.8B. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹71.42 (bear case) to ₹163.71 (bull case); at ₹84.70, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 13% below its 52-week high and 32% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at −22% fair-value upside, at 33%, NMDC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹2.15 per share, which is 1.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ₹56.02 ₹97.54 ₹186.38 76
Growth DCF ₹55.22 ₹94.47 ₹169.03 75
EPV ₹81.75 ₹93.89 ₹104.68 74
All 26 models by family
DCF Models
FCF DCF ₹56.02 ₹97.54 ₹186.38 76
Owner Earnings ₹92.28 ₹173.58 ₹332.39 72
5Y Revenue Exit ₹53.03 ₹88.11 ₹137.62 71
5Y EBITDA Exit ₹78.43 ₹143.31 ₹228.94 73
5Y P/E Exit ₹97.88 ₹185.57 ₹291.74 69
10Y Revenue Exit ₹52.29 ₹87.32 ₹145.19 65
10Y EBITDA Exit ₹71.37 ₹129.98 ₹227.56 66
10Y P/E Exit ₹84.85 ₹162.64 ₹284.22 61
Earnings-Based
Graham-Dodd ₹57.63 ₹316.69 ₹439.39 63
Lynch FV ₹88.15 ₹125.93 ₹163.71 61
PEG = 1.0 ₹88.15 ₹125.93 ₹163.71 57
EPV ₹81.75 ₹93.89 ₹104.68 74
Dividend Discount
Gordon GGM ₹33.67 ₹73.50 ₹123.67 65
DDM Multi-Stage ₹33.67 ₹60.21 ₹76.60 66
Multiples
P/E Multiple ₹108.05 ₹144.06 ₹180.08 63
P/S Multiple ₹41.04 ₹54.72 ₹68.40 58
P/B Multiple ₹87.17 ₹116.23 ₹145.29 55
EV/EBIT ₹117.84 ₹152.80 ₹187.76 66
EV/EBITDA ₹91.94 ₹118.27 ₹144.60 67
EV/Revenue ₹51.25 ₹67.67 ₹84.08 54
Asset-Based
NCAV (Graham) ₹19.37 ₹25.96 ₹38.74 54
Growth DCF
Growth DCF ₹55.22 ₹94.47 ₹169.03 75
Rev-Margin DCF ₹53.03 ₹86.74 ₹132.82 71
Economic Profit
Residual Income ₹57.29 ₹74.23 ₹316.24 64
ROIC Compounder ₹93.72 ₹124.75 ₹165.90 72
Growth Earnings
Growth-Adj P/E ₹115.79 ₹165.42 ₹215.04 67

Widest divergence: Growth Earnings (₹165.42) versus Asset-Based (₹25.96). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 10.0
P/S ratio 2.32 P/E × margin
EPS (TTM) ₹8.47 price ÷ EPS = P/E 10.0
Dividend yield 4.1% payout 41.3%
Net margin 23.2% FY2026
Return on equity 23.4% TTM
More key figures
Profitability
Return on assets (EBIT) 28.9% avg 5y
Operating margin 22.0% TTM
Growth
Revenue (TTM) ₹321B TTM
Revenue growth (YoY) +61.9% 3y avg +22.0%
EPS growth (YoY) +37.7%
Balance sheet & cash flow
Free cash flow ₹25.8B FY2026
Net cash ₹49.8B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 63 · Market factors (momentum, volatility) 59

Profitability 70
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 94
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 56
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India and internationally. It operates through Iron Ore, and All Other Segments (Pellets, Other Minerals & Services).

Full company description

NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India and internationally. It operates through Iron Ore, and All Other Segments (Pellets, Other Minerals & Services). The company also explores for lithium, copper, rock phosphate, limestone, beach sand, coking and non-coking coal, magnesite, diamond, tungsten, nickel, gold, base metals, and rare earth metals. In addition, it produces and sells hot rolled coil and pellets; and generates and distributes solar and wind power. The company exports its products. NMDC Limited was incorporated in 1958 and is headquartered in Hyderabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

NMDC Limited reported revenue of ₹321B in FY2026 versus ₹260B in FY2022, a compound +5.4%/yr. Reported net income was ₹74.5B in FY2026, compounding −5.7%/yr from FY2022.

Growth Quality 91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
₹321B
Latest YoY
+34.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.0%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.8%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.8%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+7.6% (3.5 + 4.1)
Revenue +5.4%/yr
FY22 ₹260B
FY23 ₹177B
FY24 ₹213B
FY25 ₹239B
FY26 ₹321B
Net income −5.7%/yr
FY22 ₹94.3B
FY23 ₹56.0B
FY24 ₹55.8B
FY25 ₹65.4B
FY26 ₹74.5B
Character of growth · EPS growth decomposed (2015-2026) +8.9 % p.a.
Revenue per share +15.0 %

of which total revenue +12.1 % · buybacks/dilution +2.6 %

EBIT margin −6.3 %
Tax rate +1.3 %
Residual (interest, one-offs) −0.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "NMDC Limited Fair Value". https://www.fairvalue-calculator.com/stock/NMDC

Peer Group

Steel · 398 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +33% · Top 25%
Return on equity (TTM) 23% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 62% · Top 25%
Dividend yield (TTM) 4.1% · Above median

Valuation Multiples vs Steel median · lower = cheaper

P/E (TTM) 10.0× · Cheaper than 75% of peers
P/B 2.17× · Pricier than 75% of peers
P/S (TTM) 2.31× · Pricier than 75% of peers
P/FCF 0.3× · Cheaper than median
EV/EBITDA 6.8× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE78 · sector 12
FUTURE100 · sector 2
PAST93 · sector 16
HEALTH100 · sector 95
DIVIDEND83 · sector 49

Insider activity: 25/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Steel stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Nucor Corporation NUE $250.50 $116.05 −54%
ArcelorMittal S.A MT €64.60 €46.04 −29%
JSW Steel Limited JSWSTEEL ₹1,296 ₹1,119 −14%
Steel Dynamics, Inc STLD $234.67 $127.14 −46%
500228 500228 ₹1,292 ₹1,079 −16%
Tata Steel Limited TATASTEEL ₹186.80 ₹145.39 −22%
Reliance, Inc RS $387.59 $217.81 −44%
Baoshan Iron & Steel Co 600019 ¥5.91 ¥8.07 +37%
POSCO Holdings PKX $63.13 $85.21 +35%
Jindal Steel & Power Limited JINDALSTEL ₹1,114 ₹429.44 −61%

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Frequently asked questions

Is NMDC Limited (NMDC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹112.98 versus a price of ₹84.70, about +33% upside (undervalued).
What is the fair value of NMDC?
Our model-based fair value for NMDC Limited is ₹112.98 (as of Aug 13, 2026), built from audited fundamentals. The current price: ₹84.70.
What is the quality score of NMDC?
NMDC Limited has a Quality Score of 62/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of NMDC Limited (NMDC)?
NMDC Limited reported trailing-twelve-month revenue of about ₹321B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of NMDC?
The net profit margin of NMDC Limited is about 23.2%, meaning it keeps roughly 23.2% of revenue as net income. Based on the latest reported figures.
Does NMDC Limited pay a dividend?
NMDC Limited currently shows a dividend yield of about 4.13% relative to its recent price (as of Aug 13, 2026).
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