BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
NMDC Ltd. has attractive fundamental setups with robust steel demand, no export duty, and no overhang from the steel business.
Domestic steel demand is looking up with the government’s focus on Infra development and with the opening up of the China market. Many steel players are adding capacity and this, we believe, would drive up demand for Iron ore over the next few years.
Removal of export duty on iron ore, pellet, and steel in Nov-22 is already showing positive signs and prices of iron ore have increased since then.
Also, global iron ore prices have been rising, on the back of improving China demand. This, we believe, would benefit players such as NMDC to supply more in the domestic market as well as look to exports.
NMDC has demerged its steel plant, which has now been listed separately. The overhang of the steel plant capex has been done away with, providing more comfort on the core iron ore business.
Capacity expansion is on the cards for NMDC (50 million tonne being increased to 70 million tonne), which would support volumes ahead.
Strong domestic demand, exports of iron ore and pellets would be the key demand drivers for NMDC.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
Tata Steel's Pellet Plant Deal To Be A Long-Term Margin Booster, Says Motilal Oswal — Check Target Price
Tata Steel To Acquire Lloyds Metals' Arm To Secure Iron Ore Pellet Supply
JSW Steel-JFE Steel JV On BPSL Spurs Growth; Motilal Oswal Reiterates 'Buy' Call
NMDC Steel Q2 Results: Swings Back To Loss; Shares Fall Nearly 7%
POPULAR