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NMDC Shares Surge to 52-Week High on Production Boom
2 Jun
Summary
- NMDC shares reached a new 52-week high of Rs 97.20.
- Iron ore production increased by 19.86% year-on-year in May 2026.
- Fourth-quarter profit saw a significant 36% surge.
- PL Capital maintains an 'Accumulate' rating with a target price of Rs 97.
Shares of NMDC Limited have achieved a new 52-week high, trading at Rs 97.20 in Tuesday's session. This rally is propelled by the company's strong performance in iron ore production.
NMDC reported a significant 19.86% year-on-year increase in iron ore output for May 2026, reaching 5.31 million tonnes. This growth was primarily driven by a substantial 30.39% surge in production from its Chhattisgarh division. However, the Karnataka division experienced a 3.65% decline in its iron ore output during the same period.
These production figures follow a strong financial quarter, with NMDC's fourth-quarter profit for the financial year 2025-26 jumping by 36% to Rs 2,017.6 crore. The company's consolidated revenue also grew by 62% annually, supported by improved premiums and a healthy contribution from its trading business.
Looking ahead, NMDC plans to boost its capital expenditure and may benefit from rising metal prices in the first half of FY2025-26. Investment firm PL Capital has reiterated an 'Accumulate' recommendation for the stock, setting a target price of Rs 97, reflecting optimism about higher iron ore pricing and diversification into areas like pellets and coal mining.
