President of India-Backed Iron Ore Stock: Board Announces 2:1 Bonus Share After 16 Years; Check Record Date Inside

The stock is up by 27.30 per cent from its 52-week low of Rs 179.75 per share

India's Largest Iron Ore Producer informed that a meeting of the Board of Directors of the company announced 2:1 i.e., 2 (Two) new fully paid-up equity shares of Re 1 (Rupee One Only) each for every 1 (One) existing fully paid-up equity share of Re 1 (Rupee One Only) held as on the record date. The board fixed the record date as Friday, December 27, 2024. Earlier, the company announced bonus shares 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.

According to Quarterly Results, the net sales increased by 23 per cent to Rs 4,919 crore and net profit increased by 18 per cent to Rs 1,211.25 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 10 per cent to Rs 10,333.10 crore and net profit increased by 19 per cent to Rs 3,182.34 crore in H1FY25 compared to H1FY24. In FY24, the company reported net sales of Rs 21,307.85 crore and net profit of Rs 5,575.06 crore.

The company has a market cap of over Rs 66,000 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 27.30 per cent from its 52-week low of Rs 179.75 per share. Investors should keep an eye on this mid-cap stock.

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