Should I buy NMDC shares in India in 2025?
Is it the right time to buy NMDC?
ScoreAs of July 2025, NMDC Limited is trading at approximately ₹68.78 on both NSE and BSE, with a robust average daily trading volume of around 22.5 million shares. The company, a government-backed leader in India's iron ore industry, continues to command a 29% domestic market share, underpinned by some of the lowest leverage in the sector (debt ratio 0.13) and outstanding financial fundamentals, including an attractive dividend yield of 4.8% and a moderate PER of 9.2. Despite a one-year price correction, recent quarterly results remain in line with expectations, reflecting revenue growth and stable profitability. Notable developments such as achieving record monthly production in May 2025 and initiating international expansion with a new office in Dubai feed optimism about the company’s growth prospects. These ambitious expansion and capacity enhancement plans align well with strong domestic steel demand—a broad sectoral tailwind. According to the consensus of more than 12 national and international banks, the target price stands at ₹89.41. Recent market sentiment has become more constructive after initial volatility, with analysts appreciating NMDC's strategic investments and resilience. For Indian investors seeking stable value in the metals and mining sector, NMDC presents a credible opportunity for medium- to long-term capital appreciation.
- ✅Market leader with 29% share in Indian iron ore production.
- ✅Attractive 4.8% dividend yield, above sector average.
- ✅Production expansion targets: 100 MT annual capacity by 2030.
- ✅Consistently strong financials with low debt and high ROE of 23%.
- ✅Robust government support as a public sector enterprise.
- ❌High exposure to domestic market limits diversification.
- ❌Earnings sensitive to global iron ore price volatility.
Score- ✅Market leader with 29% share in Indian iron ore production.
- ✅Attractive 4.8% dividend yield, above sector average.
- ✅Production expansion targets: 100 MT annual capacity by 2030.
- ✅Consistently strong financials with low debt and high ROE of 23%.
- ✅Robust government support as a public sector enterprise.
Is it the right time to buy NMDC?
- ✅Market leader with 29% share in Indian iron ore production.
- ✅Attractive 4.8% dividend yield, above sector average.
- ✅Production expansion targets: 100 MT annual capacity by 2030.
- ✅Consistently strong financials with low debt and high ROE of 23%.
- ✅Robust government support as a public sector enterprise.
- ❌High exposure to domestic market limits diversification.
- ❌Earnings sensitive to global iron ore price volatility.
Score- ✅Market leader with 29% share in Indian iron ore production.
- ✅Attractive 4.8% dividend yield, above sector average.
- ✅Production expansion targets: 100 MT annual capacity by 2030.
- ✅Consistently strong financials with low debt and high ROE of 23%.
- ✅Robust government support as a public sector enterprise.
- What is NMDC?
- How much is NMDC stock?
- Our full analysis on NMDC stock
- How to buy NMDC stock in India?
- Our 7 tips for buying NMDC stock
- The latest news about NMDC
- FAQ
- On the same topic
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of NMDC for over three years. Every month, lakhs of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by NMDC.
What is NMDC?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | India | Indian public sector company with strong government support and strategic importance. |
| 💼 Market | NSE, BSE | Listed on major Indian exchanges, providing wide access for retail and institutional investors. |
| 🏛️ ISIN code | INE584A01023 | Unique identifier ensures clarity and tracking across all Indian and international markets. |
| 👤 CEO | Amitava Mukherjee | Leadership transition in 2025 may drive renewed focus and execution on growth initiatives. |
| 🏢 Market cap | ₹60,470 crores (about $7.2 billion) | Large capitalization signals financial stability and high investor confidence in the sector. |
| 📈 Revenue | ₹23,906 crores (FY2025) | Revenue growth of 12.2% YoY reflects increasing domestic steel demand and successful expansion. |
| 💹 EBITDA | ₹9,556 crores (FY2025, estimated) | High EBITDA margins highlight operational efficiency and robust profitability in core business. |
| 📊 P/E Ratio (Price/Earnings) | 9.24 | Attractive P/E for a market leader; indicates reasonable valuation relative to earnings. |
How much is NMDC stock?
The price of NMDC stock is down this week. Currently, NMDC trades at ₹68.78, reflecting a 0.41% decrease over the last 24 hours and a 1.62% decline for the week. The company’s market capitalization stands at ₹60,470 crores, with an average daily volume of 22.48 million shares in recent months. The P/E ratio is an attractive 9.24, with a 4.8% dividend yield, and the stock’s beta is 1.51, indicating higher than average market volatility. NMDC offers investment potential but may experience significant price swings in the near term.
Our full analysis on NMDC stock
We have thoroughly reviewed NMDC’s most recent financial results, as well as the company’s stock performance across the past three years. This analysis integrates multidimensional inputs, including updated financial indicators, verified technical signals, peer and sector data, and market intelligence, all synthesized by our proprietary algorithms to deliver actionable insight. So, why might NMDC stock once again become a strategic entry point into the Indian resources sector in 2025?
Recent performance and market context
After a period of volatility, NMDC’s share price currently stands at ₹68.78, reflecting a modest intraday decline of 0.41% but holding steady relative to broader sector trends. Over the last six months, the stock has recovered by 1.66%, signaling renewed market confidence amid a longer-term -17.99% correction from previous highs. The market is responding favorably to record quarterly iron ore production (+89% y/y in May 2025) and strong revenue growth (+12.2% for FY2025) as the company capitalizes on India’s robust domestic demand for raw materials. Expansion of production capacity and the opening of a new international office in Dubai reinforce the strategic pivot towards global diversification, positioning NMDC to benefit from both national infrastructure trends and international markets.
The broader macro environment also looks promising. India’s continued emphasis on infrastructure, along with supportive government policies and increasing steel consumption, creates a fertile landscape for dominant players in mining and materials. NMDC’s impressive market share (29% of domestic iron ore) and reputation for reliability under government ownership set a positive context for future outperformance.
Technical analysis
Technical indicators offer encouraging signals. The current RSI (14) at 48.89 places NMDC close to neutral territory, indicating neither overbought nor oversold conditions—a potential setup for a bullish reversal. The MACD is only slightly negative (–0.12), while the 20-day moving average (₹68.55) is closely aligned with the current price, suggesting the stock is consolidating at a key technical zone.
Support at ₹68.26 and ₹67.46 has proven resilient, providing a buffer against further declines. Resistance levels have shifted to ₹69.76 and ₹70.46—should these thresholds be breached, a new bullish phase could be triggered, unlocking the path toward analyst targets in the ₹80–₹89 range. Momentum in short- and medium-term structure appears poised for a shift, particularly as recent corrections have stabilized, attracting renewed investor interest.
Fundamental analysis
NMDC’s fundamentals are compelling and continue to strengthen. Annual revenue for FY2025 reached ₹23,906 crores, demonstrating robust double-digit growth (12.2% year over year). Profitability remains impressive, with a net margin of 27.4% and Net Profit for the latest quarter of ₹1,467 crores. The five-year CAGR sales growth of 16.7% underscores consistent operational excellence, while Return on Equity (23.08%) and ROCE (29.88%) both signal effective management and efficient capital allocation.
Valuation metrics are attractive relative to industry peers: the current P/E ratio is just 9.24, offering value in a market often characterized by stretched multiples. The dividend yield stands at a healthy 4.8%, providing income support alongside capital appreciation potential. With net debt at extremely low levels (debt/equity of 0.13), NMDC demonstrates prudent financial management and flexibility to fund growth initiatives.
Structurally, NMDC’s leadership is reinforced by a unique combination of asset quality (notably, the Bailadila and Donimalai mines), advanced mechanization, and favored access as a public sector enterprise under the Ministry of Steel. Its dominant market share and brand strength place it in an enviable position as India intensifies its infrastructure build-out.
Volume and liquidity
Trading volumes remain elevated and stable, with a 3-month average daily turnover of 22.48 million shares. This sustained liquidity reflects ongoing institutional confidence and enables efficient price discovery—an essential ingredient in supporting market value and minimizing slippage for larger transactions.
The free float, held primarily by retail and institutional investors (with the government retaining 60.79% promoter holding), ensures active participation, providing a favorable environment for price appreciation as new catalysts emerge.
Catalysts and positive outlook
- Expansion initiatives: Active investments totaling ₹12,000 crores drive an increase in production capacity, targeting 55.4 million tonnes in FY2026 and a bold ambition of reaching 100 million tonnes by 2030.
- International expansion: The opening of the Dubai office enables foray into African and Australian resources, adding a diversification layer that could smooth revenues and open new growth markets.
- Technological innovation: Continued modernization of core mining operations and adoption of efficiency-enhancing technologies enhance operating leverage and competitive position.
- ESG and efficiency: NMDC’s public sector orientation and government backing may accelerate ESG initiatives, supporting long-term sustainability and value creation.
- Strong sector dynamics: India’s infrastructure and industrial consumption remain on an uptrend, and NMDC is perfectly positioned to serve key growth verticals such as steel and construction materials.
These factors combine to renew confidence that NMDC will continue to deliver shareholder value, underpinned by a strategy focused on sustainable growth, disciplined capital deployment, and a readiness to capitalize on both domestic and global opportunities.
Investment strategies
- Short-term: Technical stabilization at strong support levels and recent positive newsflow suggest the potential for a near-term upside, especially on any technical breakout above ₹70–₹72.
- Medium-term: The imminent ramp-up of capacity, execution on new projects, and positive quarterly reports could drive re-rating as new milestones are reached.
- Long-term: NMDC’s established leadership, ongoing expansion, attractive yield, and prudent financial management justify a long-term holding, with the dual benefits of income and capital growth. Positioning at current price levels allows investors to enter near historical support, reducing downside risk while maximizing participation in a likely recovery phase.
Ideal accumulation strategies might involve phased buying during pullbacks near supports or opportunistic entry ahead of anticipated upgrades and macro tailwinds. As always, disciplined portfolio allocation and regular monitoring are key to optimizing risk-adjusted returns.
Is it the right time to buy NMDC?
NMDC’s profile is distinguished by its powerful combination of operational momentum, dominant industry presence, attractive valuation, and robust growth outlook. The company’s unrivaled scale, ambitious roadmap, and prudent balance sheet provide plenty of reasons for investors to revisit their positioning, with the stock’s current consolidation phase offering a potentially strategic entry.
All relevant signs—stabilizing technicals, strong fundamentals, healthy dividend yield, and numerous growth catalysts—point to NMDC stock presenting an excellent opportunity for investors aiming to benefit from India’s infrastructure expansion and global commodity demand. While volatility is inherent to the resources sector, the risk-reward balance is skewed favorably, particularly for those able to adopt a medium- to long-term perspective. In sum, NMDC may be on the cusp of a new bullish phase, and deserves close attention from any investor seeking exposure to the key pillars of India’s economic future.
The opportunity ahead is compelling—NMDC’s fundamentally strong position, ongoing growth initiatives, and positive sector backdrop make it a stock that should be on the radar of confident investors looking to harness the next wave of value creation in the Indian economy.
How to buy NMDC stock in India?
Buying NMDC stock online is a straightforward and secure process when you use a reputed, regulated broker in India. You have two main options: purchasing shares outright (spot buying) or trading them via Contracts for Difference (CFDs). Spot buying means you own the NMDC shares directly, while CFDs let you speculate on the price without actual ownership, offering the possibility of using leverage. Each approach has its own advantages and fee structure. To help you select the best broker for your needs and budget, you’ll find a detailed comparison further down the page.
Spot buying
When you buy NMDC stock for cash, you’re purchasing real shares that are held in your demat account. This method is ideal for long-term investors who want to benefit from direct ownership and any dividends paid. In India, brokers typically charge a fixed commission per order, often around ₹20–₹30 per trade for leading online platforms.
Gain scenario
For example, if the NMDC share price is ₹68.78, you can buy around 14 shares with a $1,000 (about ₹83,400) stake, including a brokerage fee of about $5 (₹415).
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD (Contract for Difference) trading on NMDC stock allows you to speculate on share price fluctuations without owning the actual shares. CFDs are particularly popular for short-term trading due to leverage, which lets you control a larger position with a smaller investment. Instead of a direct commission, brokers apply a spread (the difference between buy and sell prices) and, if positions are held overnight, overnight financing charges.
CFD Trading Example: Gain Scenario
You open a CFD position on NMDC shares, with 5x leverage and a $1,000 stake.
This gives you a market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before making any investment, it is important to compare the fees, trading conditions, and services offered by different brokers—a complete comparison is available further down this page. Whether you choose the security of spot buying or the agility of CFDs ultimately depends on your personal investment goals and risk appetite. Taking the time to choose the right approach will help you get started with confidence on your NMDC investing journey.
Check out the best brokers in India!Compare brokersOur 7 tips for buying NMDC stock
| 📊 Step | 📝 Specific tip for NMDC |
|---|---|
| Analyze the market | Assess iron ore price trends and Indian steel demand, as these directly influence NMDC’s revenues. |
| Choose the right trading platform | Opt for an Indian broker offering BSE/NSE access, low brokerage, and a seamless account opening process for NMDC. |
| Define your investment budget | Decide how much to invest in NMDC after considering your risk appetite and overall portfolio diversification. |
| Choose a strategy (short or long term) | NMDC is suited to long-term holding due to its strong fundamentals and ambitious capacity expansion plans. |
| Monitor news and financial results | Track NMDC’s quarterly earnings, production updates, and government policy announcements for fresh insights. |
| Use risk management tools | Set stop-loss orders and monitor support/resistance levels to manage downside risk in NMDC’s share price. |
| Sell at the right time | Consider booking profits during sector rallies or when NMDC achieves major production or policy milestones. |
The latest news about NMDC
NMDC announces record monthly iron ore production in May 2025, up 89% year-on-year. NMDC reported an exceptional production volume of 4.43 million tonnes in May, representing a substantial year-on-year increase that sets a new monthly record for the company. This surge underscores NMDC’s operational efficiency amid rising domestic steel demand, strengthening its leadership position in India’s iron ore sector and supporting positive sentiment for the stock.
Total annual revenue growth for FY2025 remains robust, with a 12.2% year-on-year increase. Financial statements released this week confirm NMDC’s total revenue reached ₹23,906 crores for FY2025, outpacing market growth expectations. The company’s strong topline performance is paired with a 27.4% net margin, reflecting both pricing power and cost discipline, which bolsters confidence in ongoing profitability and shareholder returns.
The Board confirms a continued focus on capacity expansion targeting 100 million tonnes by 2030. Recent official communications emphasize NMDC’s long-term vision, reinforced by ongoing investments (₹12,000 crores) and the FY2026 production target of 55.4 million tonnes. These strategic moves, including supply chain modernization and technological upgrades, are critical in maintaining competitive advantage as both domestic and export markets expand.
Expansion into international markets is accelerated with the opening of a Dubai office. The launch of NMDC’s international office in Dubai last week is a pivotal step in growing its geographic footprint, supporting resource acquisition and partnerships in Africa and Australia. This new presence is expected to facilitate diversification and the securing of critical minerals, aligning with India’s beneficiation and industrial policy goals.
Recent institutional investor interest supports stable market capitalization at around ₹60,470 crores. Update on institutional holdings indicates continued strong participation from both domestic and foreign institutional investors. Stable shareholding structure, combined with active government oversight (promoters at over 60%), reflects investor confidence in NMDC’s governance, strategic direction, and resilience amidst global market fluctuations.
FAQ
What is the latest dividend for NMDC stock?
NMDC currently pays a dividend, with the most recent announced dividend at ₹7.30 per share, paid in April 2025. This gives the company an attractive yield in comparison to many other large-cap Indian stocks. NMDC has a consistent dividend distribution policy, rewarding shareholders regularly due to its strong cash flow and government ownership background.
What is the forecast for NMDC stock in 2025, 2026, and 2027?
With the current share price at ₹68.78, the forecasted price is ₹89 at the end of 2025, ₹103 at the end of 2026, and ₹138 at the end of 2027. NMDC’s outlook is supported by expansion in iron ore production, positive sector momentum, and strong domestic demand for steel.
Should I sell my NMDC shares?
Holding NMDC shares can be worthwhile if you seek long-term exposure to India’s core industrial growth. The company enjoys a dominant position in iron ore, robust financials, and ambitious expansion plans. Its steady dividends and government support further strengthen its investment case, making it suitable for patient investors seeking value and stability.
How are dividends and capital gains from NMDC taxed in India?
Dividends from NMDC are taxed as per your income tax slab, while capital gains are taxed at 15% for short-term holdings and 10% for long-term gains exceeding ₹1 lakh in profit. There is no special scheme like PEA for Indian stocks, but both dividend and capital gains are subject to self-assessment and annual return filing.
What is the latest dividend for NMDC stock?
NMDC currently pays a dividend, with the most recent announced dividend at ₹7.30 per share, paid in April 2025. This gives the company an attractive yield in comparison to many other large-cap Indian stocks. NMDC has a consistent dividend distribution policy, rewarding shareholders regularly due to its strong cash flow and government ownership background.
What is the forecast for NMDC stock in 2025, 2026, and 2027?
With the current share price at ₹68.78, the forecasted price is ₹89 at the end of 2025, ₹103 at the end of 2026, and ₹138 at the end of 2027. NMDC’s outlook is supported by expansion in iron ore production, positive sector momentum, and strong domestic demand for steel.
Should I sell my NMDC shares?
Holding NMDC shares can be worthwhile if you seek long-term exposure to India’s core industrial growth. The company enjoys a dominant position in iron ore, robust financials, and ambitious expansion plans. Its steady dividends and government support further strengthen its investment case, making it suitable for patient investors seeking value and stability.
How are dividends and capital gains from NMDC taxed in India?
Dividends from NMDC are taxed as per your income tax slab, while capital gains are taxed at 15% for short-term holdings and 10% for long-term gains exceeding ₹1 lakh in profit. There is no special scheme like PEA for Indian stocks, but both dividend and capital gains are subject to self-assessment and annual return filing.
On the same topic
