Should I buy NMDC stock in 2025? Full Guide for Indian Investors

What is NMDC?

How much is NMDC stock?

The price of NMDC stock is rising this week. Currently, NMDC is trading at ₹70.26 per share, reflecting a slight change of -0.01% over the past 24 hours and a strong gain of 9.29% for the week.

The stock's beta of 1.49 signals higher-than-average volatility. Investors should be aware of the recent sharp rebound and the potential for further price swings in the current market context.

Our full analysis on NMDC stock

We have conducted a thorough review of NMDC Limited’s latest financial disclosures, pricing evolution over the last three years, and forward-looking performance signals. Leveraging a combination of proprietary models and cross-sourced market intelligence—encompassing financial ratios, technical momentum, sector dynamics, and in-depth peer benchmarking—our analysis seeks to illuminate NMDC’s investment merit. So, why might NMDC once again emerge as a strategic entry point into India’s resource and infrastructure sector in 2025?

Recent Performance and Market Context

Over the past twelve months, NMDC shares have retraced from highs, closing recently at ₹70.26—down 24.76% year-on-year, yet up a robust 47.85% over three years. While the one-year lag reflects the cyclical turbulence typical of mining equities, the latest period points to stabilisation and recovery: the stock is up 9.29% over the past week, 6.66% over the last month, and has gained 11.40% in three months. This positive near-term momentum is concurrent with NMDC’s outstanding December 2024 quarterly results, where net sales surged 20.72% year-on-year to ₹6,530.82 crore and net profit reached ₹1,943.51 crore—signalling operational resilience.

The macro context plays strongly in NMDC’s favour. With India’s GDP growth sustaining its global leadership, government-led capital expenditure on infrastructure, urbanisation, and electrification are turbocharging steel demand—the primary end-market for iron ore. Growth in the renewable energy and electric vehicle sectors, where lithium and steel are critical inputs, further supports NMDC’s long-term prospects, as the company leverages its exploratory activities across iron ore, base metals, and future minerals.

Technical Analysis

NMDC’s technical structure reveals growing buy-side conviction. Key daily indicators highlight:

• RSI (14-day) at 61.3: comfortably mid-range, pointing neither to overbought nor oversold conditions, thus allowing room for further upside.
• MACD at 0.9: positive and above both the center and signal lines, underlining a bullish trend.
• Money Flow Index (MFI) at 72.1: suggests some near-term caution as overbought territory approaches, yet the trend is propelled by genuine volume, not mere speculation.
• Moving Averages: The current price trades well above the 20-day (₹66.9), 50-day (₹66.4), and 100-day (₹66.0) simple moving averages, validating a bullish medium-term configuration. Notably, NMDC sits just below the 200-day moving average (₹70.7)—a successful close above this level could spark a powerful technical reversal, attracting momentum funds and technically driven investors.

Key support levels at ₹69.71, ₹69.15, and ₹68.58 offer downside containment, while immediate resistances at ₹70.84 and ₹71.97 could catalyse further breakout if surpassed. Price action in recent weeks, alongside robust volume, positions NMDC as a classic turnaround candidate with the potential for a new bullish phase into 2025.

Fundamental Analysis

What underpins this technical promise is a steadfast fundamental base:

• Revenue Growth: TTM revenue of ₹23,390 crore with a healthy five-year sales CAGR of 11.9% underscores topline durability—even as mining’s cyclical swings pose periodic headwinds.
• Profitability: Despite a minor three-year profit contraction (-3% CAGR) owing largely to global commodity volatility, NMDC’s December quarter saw operating profit margins at a stellar 36%. Full-year ROCE (30.9%) and ROE (23.9%) outstrip most peers, highlighting efficient capital usage and shareholder value focus.
• Attractive Valuation: With a P/E ratio of 9.54 and a 3.44% dividend yield, NMDC stands out among large-cap industrials for its affordable entry point and consistent cash returns. The stock’s book value at ₹32.3 points to limited downside risk, supported by asset-heavy operations and strong balance sheet health.
• Strategic Strengths: As India’s largest iron ore producer, NMDC benefits from scale efficiencies and bargaining power. Diversification into diamonds, base metals, and lithium—especially the Mount Bevan JV in Australia—opens up future growth vectors beyond conventional mining. Notably, the company’s status as a Navratna PSU ensures both policy stability and preferential resource access.

Volume and Liquidity

Liquidity is a key pillar of NMDC’s investment appeal. Daily traded volumes averaged 20.1 million shares (NSE+BSE), indicating robust institutional and retail participation. Such volumes not only enable efficient price discovery but also assure investors of sufficient exit and re-entry options—a mark of high confidence and market relevance. NMDC’s free float, although partially constrained by government holding, is still ample to maintain vibrant trading dynamics, often a catalyst for valuation rerating in periods of sustained market optimism.

Catalysts and Positive Outlook

Looking forward, several megatrends position NMDC for accelerated growth:

• New Resource Development: Continued exploration, especially of lithium (crucial for the EV battery supply chain), diversifies future earnings streams and lessens dependency on iron ore price cycles.
• International Expansion: The company’s thrust into Australia and Mozambique, through JV mining and base metal projects, brings both geographic diversification and new market access.
• India’s Infrastructure Boom: As India drives toward a US$5 trillion economy, demand for steel—and by extension, high-quality iron ore—should remain on a multi-year upswing, benefiting NMDC’s volumes and pricing power.
• Sustainability and ESG Recognition: NMDC’s accolades in corporate social responsibility and green mining enhance both brand value and access to institutional capital focused on ESG-compliant investments.
• Technological Upgradation: Highly mechanized, digital-first mining practices yield operational efficiency and sustainability, making NMDC a model for next-generation mining in India.

These factors, coupled with robust government backing, place NMDC at the intersection of security, growth, and innovation—a combination seldom found at such reasonable valuation multiples.

Investment Strategies

Given NMDC’s evolving setup, multiple entry strategies merit consideration:

• Short-term positioning may capitalize on the upcoming technical breakout. The stock hovers just below the key 200-day moving average; a sustained close above ₹70.7—particularly with high volume—could attract further momentum flows.
• Medium-term investors could accumulate on mild pullbacks toward support ranges (₹69.15–₹68.58), using technical retracements as buying opportunities with a view toward the next results season or corporate announcements related to the lithium portfolio.
• Long-term investors may find in NMDC a rare blend of durable cash flows, exposure to core Indian infrastructure themes, and an attractive dividend stream—augmented by future growth from mineral diversification and global expansion.

Across timeframes, the stock’s structural support from government ownership, dividend appeal, and sector leadership suggest that present levels offer a compelling foundation for a renewed upward trend.

Is it the Right Time to Buy NMDC?

In sum, NMDC amalgamates several key strengths: unrivalled resource leadership, robust financial metrics (low P/E, high dividend, strong ROCE/ROE), material sector tailwinds, and promising diversification beyond India’s borders. While short-term volatility characterizes the sector, the stock’s fundamental resilience, technical positioning just below major breakout levels, and evident confidence from both retail and institutional investors suggest that the current setup may represent an excellent opportunity.

For those seeking an established, government-backed player with significant upside potential—anchored by India’s infrastructure narrative and global mineral expansion—NMDC seems poised to enter a renewed phase of outperformance. As the company strengthens its core business and capitalises on new resource opportunities, the stage is set for investors to seriously consider NMDC as an anchor asset in a diversified portfolio seeking growth, stability, and value.

Astute market participants may view NMDC’s current consolidation as the calm before a sustained upswing, with technical and macro catalysts aligning for what could be a new era of growth and sector leadership.

How to buy NMDC stock in India?

Buying NMDC stock online is both straightforward and secure when you use a regulated broker in India. You have two main choices: you can either purchase NMDC shares directly (spot buying) to hold ownership in your demat account, or trade price movements via Contracts for Difference (CFDs) without owning the underlying shares. Both methods can be accessed through modern online platforms, offering user-friendly interfaces, solid customer support, and compliance with Indian regulations. Choosing the right method—and the most cost-effective broker—is essential; a detailed broker comparison is provided further down this page.

Spot buying

A cash or spot purchase of NMDC stock means you buy the actual shares on the Indian stock exchanges (NSE or BSE) and hold them in your demat account. This approach gives you shareholder rights, such as receiving dividends and voting on company matters. Typically, Indian brokers charge a fixed commission per order, often ranging from ₹10 to ₹25, plus nominal exchange and regulatory fees.

Example

Suppose the NMDC share price is ₹70.26. With a ₹1,000 investment (roughly $12 at current rates), you can buy approximately 14 shares (1,000 ÷ 70.26 ≈ 14), taking into account a brokerage fee of around ₹100 (~$1.20 for a small order).

Gain scenario:
If the share price rises by 10% to ₹77.29, your 14 shares would be worth ₹1,082.06.
Result: That’s a +₹82 gross gain, or about +8.2% (slightly less than 10% due to the fixed costs of brokerage on smaller investments).

Trading via CFD

CFD trading allows you to speculate on NMDC’s share price movements without actually owning the shares. Instead, you enter a contract with your broker to exchange the difference in NMDC’s price from when you open to when you close the trade. Fees here include the “spread” (small difference between buy and sell price) and, for leveraged positions held overnight, a daily financing cost.

Example

You open a CFD position on NMDC shares with ₹1,000 and 5x leverage, giving you exposure to shares worth ₹5,000.

Gain scenario:
If NMDC’s stock rises by 8%, your market exposure earns you 8% × 5 = 40% gain. Your profit would be +₹400 on a ₹1,000 deposit (excluding fees and charges).

Final advice

Before you invest, it’s crucial to compare brokers’ fees, platforms, and conditions—these can make a significant difference over time, especially for frequent traders or larger investors. Whether you choose direct spot buying for long-term ownership, or CFDs for active trading with leverage, your choice should match your financial goals, risk tolerance, and investment style. For a clear side-by-side look at leading brokers and their terms, see the dedicated comparison table further down the page.

Our 7 tips for buying NMDC stock

The latest news about NMDC

NMDC stock has posted a robust 9.29% price gain in the last week, outperforming broader indices. This surge reflects strong market sentiment following the company’s recent disclosures and is mainly supported by its solid operational performance. Trading volumes on both NSE and BSE reached 20.1 million shares, demonstrating heightened interest from domestic investors and institutions. The technical landscape is also favorable: the stock is trading above its 20-, 50-, and 100-day moving averages, a typically bullish signal, and the MACD remains above the center line.

NMDC’s December 2024 quarterly results showed a 20.72% year-on-year increase in net sales, signaling operational strength. Gross revenues for the quarter stood at ₹6,530.82 crore, with the operating profit margin at an impressive 36%. Net profit reached ₹1,943.51 crore, reinforcing the strong fundamentals underpinning NMDC’s value proposition. These results indicate that rising domestic steel demand and infrastructure development, both priorities under India’s ongoing economic expansion, are having a tangible, positive financial impact on the company.

The company’s ongoing diversification and international expansion bode well for long-term growth and resilience. Efforts such as exploration of lithium reserves in Australia with the Mount Bevan mine provide future-facing optionality, especially as lithium is essential for the fast-growing electric vehicle sector in India. Additional value chain initiatives—like NMDC’s previous foray into steel production and exploration of other minerals—underline management’s commitment to broadening revenue streams and reducing dependence on traditional iron ore markets.

NMDC continues to enjoy the backing of the Indian government, underpinning financial stability and resource access. With more than 60% government ownership and classification as a Navratna PSU, the company benefits from preferential access to mineral resources, policy support, and enhanced credibility. Its healthy dividend yield of 3.44%, attractive P/E of 9.54, and leadership in return metrics (ROCE 30.9%, ROE 23.9%) further appeal to investors seeking steady, inflation-protected income from a pillar of the domestic mining sector.

Recent recognition for corporate social responsibility and sustainability reinforces NMDC’s social license and regulatory goodwill. Honors and awards in these areas underscore management’s commitment to global ESG standards, which are increasingly valued by institutional and global investors. This positive reputation enhances the likelihood of smooth regulatory renewals and strengthens the company’s competitive edge, particularly as mining faces growing environmental scrutiny both nationally and internationally.

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.