Investing in NMDC stocks can be a smart move due to several compelling reasons.
- *Growth Potential*: NMDC, being India's largest iron ore miner, has immense growth potential. With the government's focus on infrastructure development, the demand for iron ore is expected to rise, driving NMDC's growth ¹.
- *Financial Performance*: NMDC has a strong financial track record, with a net profit margin of 28% and a robust balance sheet with net cash of ₹6,300 crore as of December 2022 ¹.
- *Dividend Yield*: NMDC offers an attractive dividend yield of around 7%, making it an excellent option for income-seeking investors ¹.
- *Valuation*: The stock is currently trading at a reasonable valuation of 4.2 times one-year forward EV/EBITDA, making it an attractive buy ¹.
- *Government Support*: As a PSU (Public Sector Undertaking), NMDC enjoys government support, which can provide a sense of stability and security for investors.
Overall, considering NMDC's growth potential, financial performance, dividend yield, valuation, and government support, investing in its stocks can be a wise decision.