NMDC in demand after hiking iron ore prices

NMDC soared 7.17% to Rs 138.95 after the state owned miner announced second price hike in January 2020.

NMDC in an exchange filing during market hours today reported that they have hiked price of iron ore products. Earlier, the company had hiked prices on 2 January 2020.

Prices of lump ore (65.53, 6-40mm) have been hiked by Rs 400 or 14.29% to Rs 3200 per ton. Prices of fines (643,-10mm) have been hiked by Rs 350 or 13.67% to Rs 2910 per ton.

Meanwhile, NMDC was included in Nifty CPSE (Central Public Sector Enterprises) index on Friday, 17 January 2020 after amendments to the index were made. Stocks having more than 51.5% government holding under promoter category was eligible for inclusion in the index. As per the revised norms, stocks having more than 51% government holding under promoter category would be eligible for inclusion in the index. The changes shall become effective from 24 January 2020 (close of 23 January 2020).

NMDC's consolidated net profit rose 9.4% to Rs 691.94 crore on 8% decline in net sales to Rs 2,241.76 crore in Q2 September 2019 over Q2 September 2018.

NMDC is engaged in mining of iron ore. The firm's segments include iron ore, and other minerals & services. It is also engaged in the production and sale of diamond, sponge iron and wind power. As of 31 December 2019, the Government of India holds 72.38% stake in the company.

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