After years of underperformance, NMDC stock strikes when iron is hot

Rally fuelled by global rise in iron prices; stock trading at P/E multiple of 13x

After years of underperformance, iron ore miner NMDC’s (formerly National Mineral Development Corporation) stock price is up 55 per cent since the beginning of October 2019, against a 24 per cent rally in the Sensex during the period. After its recent rally, the stock is back to its year-ago levels, even as the Sensex is up 16 per cent in the last 12 months.

This will, however, be music to the ears of long-term investors who have lost heavily in the past decade. But the iron ore miner is still down nearly 70 per cent from its all-time highs in early