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NMDC: A long-term play on steel cycle; may see decline in FY23 revenues

NMDC's formal demerger of the steel plant may be followed by an initial public offering, or the government could look for a stake sale

Govt to sell up to 7.5% in NMDC via OFS on Tuesday, may get Rs 3,621 cr

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NMDC stock trades at a significant discount to its international peers, with a current price-to-equity (PE) of 6-7x and an enterprise value/Ebitda of 3.7x

Devangshu Datta

3 min read Last Updated : Dec 26 2022 | 11:26 PM IST

Words like “China unlock” are beginning to attract speculators. One of the key reasons and areas for the same could be China’s real estate, which contributes almost a third of its gross domestic product.

If there’s a recovery in real estate activity, steel, other industrial metals and cement would be some of the sectors where demand would obviously grow. This could make a positive difference to iron ore prices and, in turn, could mean a rebound in the valuations of NMDC since it is a major ore producer.

In that case, NMDC may be able to increase its production of

Topics : NMDC steel Compass steel prices EBITDA

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