NMDC Ltd shares fell over 4% today on the bourses, after the company reported a weak set of numbers for the quarter ended September.
The government of India public enterprise’s revenue from operations for July-September quarter stood at 3,328 crores as against 6,794 crores, down 51% on year, and 30% sequentially.
The country’s largest iron ore producers net profit for the September quarter slumped 62% on year to 889 crores from 2,342 crores, down 40% QoQ.
“On the back of lower-than-expected iron ore realisations, NMDC reported a muted set of numbers for Q2FY23, wherein topline, EBITDA and PAT all came in below our estimate,” said brokerage house, ICICI Securities Ltd.
According to the brokerage report, the company during the July-September quarter reported sales volumes 8.4 million tonnes (MT), down 6% YoY, however up 8% QoQ, lower than its estimate of 8.7 MT.
While, iron ore sales realisation for the September-ended quarter stood at 3,980 rupees/tonne, down 48% YoY, and 36% QoQ, lower than its estimate of 4,500 rupees/tonne.
On the technical front, analysts expect the stock to tumble further. “After a continuous outperformance, the stock has slipped lower following its quarterly results, as of now going with the momentum it seems prices are likely to slip further towards 104 - 102 range,” said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
He further added that it is a strong support zone that can be considered to re-enter whereas on the flip side, from current levels 112 is immediate resistance.
According to Mintgenie poll, an average of 20 analysts recommends ‘buy’ on the stock.
