Iron ore stock held by the President of India jumps over 4 percent as the Board to mull bonus shares after 16 years

The stock is up by 48.3 per cent from its 52-week low of Rs 159.45 per share.

India's Largest Iron Ore Producer informed that a meeting of Board of Directors of the company is scheduled to be held on Monday, November 11, 2024 inter-alia, to consider, approve and take on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter ended September 30, 2024 and a proposal for issue of bonus shares to the shareholders of the company, subject to requisite approvals.

Earlier, the company announced bonus share in the ratio 16 years ago in 2008.

The stock name is NMDC Limited

NMDC Limited, a leading Indian public sector undertaking established in 1958, is the country's largest iron ore producer, accounting for 18 per cent of domestic production. They operate 7 iron ore mines and a diamond mine, along with a steel plant under construction. As a profitable "Navratna" company, they contribute significantly to the government and aim to expand their iron ore production capacity to 67 MTPA.

On Tuesday, shares of NMDC Ltd jumped over 4 per cent to an intraday high of Rs 236.50 per share from its previous closing of Rs 226.55 per share. At the closing bell, shares of the company were trading at Rs 234.70 per share, up 3.60 per cent with a spurt in volume by more than 2 times.

The company has a market cap of Rs 68,781 crore and has been maintaining a healthy dividend pay-out of 39.50 per cent. The shares of the company have a PE of 11x whereas the industry PE is 21x with an ROE of 24 per cent and an ROCE of 31 per cent. The stock is up by 48.3 per cent from its 52-week low of Rs 159.45 per share. Investors should keep an eye on this mid-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.