NMDC Shares: Bullish Momentum Builds, SEBI RA Sees Over 10% Upside

Backed by strong margins and a breakout on charts, the stock could touch ₹80 in the short term, according to the analyst.

NMDC shares have rallied nearly 7% in the last five sessions, bringing it on the analysts’ radar. 

SEBI-registered analyst Gaurav Narendra Puri is bullish on this Navratna PSU stock. On the fundamentals, he believes that the stock appears undervalued, as its price is only 38% of its estimated intrinsic value, indicating potential for significant upside if the market corrects the valuation.  

With a price to earnings (P/E) ratio of 9.61 and EV/EBITDA of 6.88, the company appears undervalued compared to typical market benchmarks, he added.   

The company delivered a strong performance over the past year, achieving a healthy net margin of 27.37%, indicating efficient profitability. And over the past twelve months, NMDC has delivered a strong Return on Equity (ROE) of 23.75%, reflecting effective use of shareholder capital to generate profits. The company has an earnings yield of 10.41%, indicating it generates a solid return relative to its market price.  

Technical Trends

On the technical side, its Relative Strength Index (RSI) stands above 60, signaling bullish momentum and an increase in buying interest.  

NMDC stock is consistently taking support at the 20-day Exponential Moving Average (EMA), indicating strength and continuation of the uptrend. Rising trading volumes on daily charts confirm strong buyer participation and add credibility to the ongoing bullish trend.  

Puri noted that a trendline breakout is visible on the daily charts. He recommended buying with targets of ₹74, ₹76, and ₹80, and a stop-loss of ₹66 over a 7-day timeframe.

NMDC shares have risen 9% year-to-date (YTD).

For updates and corrections, email newsroom[at]stocktwits[dot]com.<