India largest iron ore producer came out with july-sept 2016 quarter with Standon profit of 770 Cr. In the corresponding period last year company achieved 816 Cr. One should observe that the revenue growth is there but high cost Neutralized it and it did not get translated into profit. Company other income got major dent as they spent around 7500 Cr to buy 80 lakh plus floating share at a fixed price of 94.
It is expected that NMDC will have tough Oct-Dec 2016 due to demonetization but will have very strong Jan-March 2017 quarter. NMDC is dividend paying cash rich company with dominant position in the marketplace. The current market price of 123 per share is cheap and investor should keep a close eye on equity price movement during market selloff days. In my point of view, NMDC is a long term investment opportunity and investor may reapin high Dividend payout from the company.
Disclaimer ; Consult your financial advisor before investing.
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