Government Owned Iron Ore Company Declares Rs 2.30 Interim Dividend for FY25 in Board Meeting; Record Date Set as 21st March 2025 - Details Inside!

With a PE ratio of 9.6x, the company trades at a discount compared to the industry PE of 16.4x. The company has ROCE of 30.9 per cent and ROE of 23.9 per cent.

The Board of Directors at NMDC Limited has announced the declaration of the first interim dividend for the financial year 2024-25. In a meeting held on 17th March 2025, the board declared a dividend of Rs 2.30 per equity share, each with a face value of Rs 1. The dividend will be distributed to shareholders whose names are recorded as beneficial owners in the company's register as of 21st March 2025, the designated record date. NMDC's decision to declare an interim dividend comes as part of its ongoing commitment to reward its shareholders.

NMDC Limited is a leading player in the exploration and production of iron ore, with additional operations in diamond production, sponge iron manufacturing, and wind power generation. As of 17th March 2025, NMDC's stock is priced at Rs 64.97, with a market capitalization of approximately Rs 56,118 crore. The company has experienced a modest 3-year return of 26.6 per cent, despite a slight decline of 3.48 per cent over the past year. NMDC's business model focuses on leveraging its mineral resources to maintain a strong presence in the commodities market, supported by a price-earnings ratio of 8.67. The company has been maintaining a healthy dividend payout of 39.5 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 6,567.83 crore, reflecting a YoY growth of 21.40 per cent and a QoQ increase of 33.52 per cent from Rs 4,918.91 crore in Sep-24. The net profit for Dec-24 was Rs 1,881.96 crore, showing a YoY increase of 26.82 per cent and a QoQ rise of 55.33 per cent from Rs 1,211.57 crore in Sep-24. The net profit margin for Dec-24 was 28.65 per cent, compared to 24.63 per cent in Sep-24 and 27.43 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 21,307.85 crore, reflecting a growth of 20.61 per cent from Rs 17,666.88 crore in FY23. The net profit for FY24 was Rs 6,476.97 crore, registering a growth of 26.89 per cent from Rs 4,484.30 crore in FY23. The net profit margin for FY24 stood at 21.05 per cent compared to 20.00 per cent in FY23.

As of December 2024, the shareholding pattern is as follows: Promoters hold 60.79 per cent, FIIs hold 12.12 per cent, DIIs hold 14.46 per cent, and the public holds 12.62 per cent. There is a notable decline in FII holdings from 12.60 per cent in September 2024 to 12.12 per cent, while DII holdings have increased from 14.08 per cent to 14.46 per cent.

With a PE ratio of 9.6x, the company trades at a discount compared to the industry PE of 16.4x. The company has ROCE of 30.9 per cent and ROE of 23.9 per cent.  

Investors must keep this Large-Cap stock on their radar.

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