NMDC Limited Fundamental Analysis
NMDC Limited (NMDC.NS) shows strong financial fundamentals with a PE ratio of 10.38, profit margin of 23.23%, and ROE of 23.67%. The company generates $321.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NMDC.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNMDC.NS demonstrates superior asset utilization.
Valuation Score
ExcellentNMDC.NS trades at attractive valuation levels.
Growth Score
ModerateNMDC.NS shows steady but slowing expansion.
Financial Health Score
ExcellentNMDC.NS maintains a strong and stable balance sheet.
Profitability Score
ExcellentNMDC.NS achieves industry-leading margins.
Key Financial Metrics
Is NMDC.NS Expensive or Cheap?
P/E Ratio
NMDC.NS trades at 10.38 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NMDC.NS's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values NMDC Limited at 2.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.89 times EBITDA. This is generally considered low.
How Well Does NMDC.NS Make Money?
Net Profit Margin
For every $100 in sales, NMDC Limited keeps $23.23 as profit after all expenses.
Operating Margin
Core operations generate 30.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.67 in profit for every $100 of shareholder equity.
ROA
NMDC Limited generates $15.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NMDC Limited generates limited operating cash flow of $30.44B, signaling weaker underlying cash strength.
Free Cash Flow
NMDC Limited produces free cash flow of $17.45B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.99 in free cash annually.
FCF Yield
NMDC.NS converts 2.25% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.38
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.27
vs 25 benchmark
How NMDC.NS Stacks Against Its Sector Peers
| Metric | NMDC.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.38 | 32.61 | Better (Cheaper) |
| ROE | 23.67% | 1178.00% | Weak |
| Net Margin | 23.23% | -145.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 2.43 | 3.48 | Strong Liquidity |
| ROA | 15.42% | 624.00% | Weak |
NMDC.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NMDC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value