NMDC Limited (NMDC) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of NMDC Limited stock ₹90.33, price ₹70.40, upside +28.3%, quality 66 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range ₹21.70 – ₹96.04 · fair‑value band ₹51.65 – ₹119.01 · the ₹70.40 price screens below the ₹90.33 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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NMDC Limited, together with its subsidiaries, explores for and produces iron ore in India and internationally. It operates through Iron Ore, and All Other Segments (Pellets, Other Minerals & Services).
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The company also explores for lithium, copper, rock phosphate, limestone, beach sand, coking and non-coking coal, magnesite, diamond, tungsten, nickel, gold, base metals, and rare earth metals.
In addition, it produces and sells hot rolled coil and pellets; and generates and distributes solar and wind power. The company exports its products. NMDC Limited was incorporated in 1958 and is headquartered in Hyderabad, India.
Stock analysis
NMDC Limited (NMDC) currently trades at ₹70.40, while our model-based Fair Value estimate is ₹90.33, implying the stock looks roughly 22% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹165.42 per share, and 19 of the 26 models we run sit above the ₹70.40 price.
Bear case: the Asset-Based group reads lowest at ₹17.24, and 7 of the 26 models stay below the price. Data coverage for this calculation is low.
Scenario range: ₹51.65 (bear) to ₹119.01 (bull), the price of ₹70.40 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Basic Materials sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
NMDC Limited reported revenue of ₹321B in FY2026 versus ₹260B in FY2022, a compound +5.4%/yr. Reported net income was ₹74.5B in FY2026, compounding −5.7%/yr from FY2022.
Key figures
Market cap ₹619B (≈ $6.6B) Mid · P/E ratio 8.3 · P/S ratio 1.93 · EPS (TTM) ₹8.49 · Dividend yield 5.0% · Net margin 23.2% · Return on equity 23.4% · Return on assets (EBIT) 28.9% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 out of 100 (low confidence).
What moves the price
The share trades about 27% below its 52-week high and 6% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Basic Materials peers we cover trades at −34% fair-value upside, at 28%, NMDC screens cheaper than that median.
Fair Value models
Bear₹51.65Fair Value ₹90.33Bull₹119.01
Price ₹70.40 · Upside +28.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹3.04 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF₹46.33₹70.88₹115.0579
Growth DCF₹45.36₹67.26₹99.9278
Owner Earnings₹47.33₹74.32₹118.0975
All 26 models by family
DCF Models
FCF DCF₹46.33₹70.88₹115.0579
Owner Earnings₹47.33₹74.32₹118.0975
5Y Revenue Exit₹49.27₹80.26₹123.8571
5Y EBITDA Exit₹71.66₹128.83₹204.1073
5Y P/E Exit₹88.80₹166.01₹259.2969
10Y Revenue Exit₹46.47₹74.16₹119.4965
10Y EBITDA Exit₹61.29₹107.19₹183.1266
10Y P/E Exit₹71.76₹132.48₹226.8761
Earnings-Based
Graham-Dodd₹57.63₹316.69₹439.3963
Lynch FV₹88.15₹125.93₹163.7161
PEG = 1.0₹88.15₹125.93₹163.7157
EPV₹66.64₹73.76₹79.6674
Dividend Discount
Gordon GGM₹26.55₹47.04₹63.8368
DDM Multi-Stage₹26.55₹43.36₹50.3467
Multiples
P/E Multiple₹108.05₹144.06₹180.0863
P/S Multiple₹41.04₹54.72₹68.4058
P/B Multiple₹84.73₹112.98₹141.2255
EV/EBIT₹110.55₹145.51₹180.4866
EV/EBITDA₹84.65₹110.98₹137.3167
EV/Revenue₹43.97₹60.38₹76.8054
Asset-Based
NCAV (Graham)₹11.38₹17.24₹21.5455
Growth DCF
Growth DCF₹45.36₹67.26₹99.9278
Rev-Margin DCF₹49.27₹79.08₹119.7972
Economic Profit
Residual Income₹45.91₹60.42₹96.7574
ROIC Compounder₹73.75₹91.02₹111.8172
Growth Earnings
Growth-Adj P/E₹115.79₹165.42₹215.0467
The fair value above starts from this blend and is adjusted for a cyclical peak year.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+34.2%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+22.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.8%
Start year 2021 (pandemic). Over 10 years: +17.4% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.8%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+8.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+3.5%
Dividend (yield on the price)5.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 3.5% / 12.2%
Profit margin 2022 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.50% → 27%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes about as much growth as the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+15.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.3%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +10.6% a year for the price and +0.1% for the forecasts.
AI conclusion: The business draws moderate strength from its iron ore resource base and recent production growth but remains constrained by commodity price cyclicality and public sector ownership limits.
Main risk: Commodity price cyclicality remains the single biggest risk to profitability because of the company's concentrated iron ore operations.
NMDC has just commissioned a major integrated iron ore processing and pellet plant project in Chhattisgarh while reporting solid production growth. At the same time it paused plans to enter nickel mining because of global oversupply. Does sticking closely to its iron ore strengths or selectively pursuing other minerals create more lasting value?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Steel · 410 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score66 · Top 25%
Fair Value upside+28.3% · Above median
Profitability
Return on equity (12 months)23.4% · Top 25%
Return on assets15.4% · Top 25%
Net margin (12 months)23.2% · Top 25%
Operating margin (12 months)34.8% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)0.8% · Below median
Dividend yield (12 months)5.0% · Top 25%
Valuation Multiplesvs Steel median · lower = cheaper
P/E (12 months)8.3× · Cheapest 25%
P/B1.82× · Priciest 25%
P/S (12 months)1.93× · Priciest 25%
Price / free cash flow (fiscal year)24.0× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "NMDC Limited Fair Value". https://www.fairvalue-calculator.com/stock/NMDC
Frequently asked questions
Is NMDC Limited (NMDC) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of ₹90.33 versus a price of ₹70.40, about +28% upside (undervalued).
What is the fair value of NMDC?
Our model-based fair value for NMDC Limited is ₹90.33 (as of Nov 4, 2026), built from audited fundamentals. The current price: ₹70.40.
What is the quality score of NMDC?
NMDC Limited has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for NMDC Limited (NMDC)?
Our model-based price target is the fair value of ₹90.33 (as of Nov 4, 2026) from 26 valuation models. Cautious scenario ₹51.65, optimistic scenario ₹119.01. It is a calculation from audited fundamentals, not an analyst target.
What is the NMDC Limited stock forecast for 2026?
Our models put fair value at ₹90.33, about +28% upside versus a price of ₹70.40 (undervalued). Cautious scenario ₹51.65, optimistic scenario ₹119.01. The calculation is refreshed regularly with new filings.
What is the revenue of NMDC Limited (NMDC)?
NMDC Limited reported trailing-twelve-month revenue of about ₹321B (latest available figure, as of Nov 4, 2026).
Does NMDC Limited pay a dividend?
NMDC Limited currently shows a dividend yield of 4.97% relative to its recent price (as of Nov 4, 2026).
How much is the dividend of NMDC Limited (NMDC) and when is the ex-dividend date?
NMDC Limited pays a dividend of ₹3.50 per share a year, a dividend yield of 5.0%. The last ex-dividend date was Oct 5, 2026. A dividend has been paid every year since at least 2008. The payout ratio is 41.2% of earnings. Free cash flow covers the dividend 0.84 times. Our assessment: Watch coverage. The dividend isn’t fully covered by free cash flow or earnings, part of it is funded from reserves or debt. Fine for now, but worth watching: if it stays uncovered, the dividend could be cut.
What growth is priced into NMDC Limited (NMDC)?
For today's price to be fair in a discounted-cash-flow model, NMDC Limited would have to grow free cash flow by +15.1 % per year for five years (discount rate 11.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.9 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of NMDC use?
Our models discount NMDC Limited at 11.3 %: a base by market capitalisation (mid), damped by beta 0.66, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For NMDC Limited that is +15.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.3 %) and the same formula as our fair value.
How much growth has NMDC Limited (NMDC) delivered so far?
Over the past 5 years revenue at NMDC Limited grew +15.9 % a year. The price currently implies free-cash-flow growth of +15.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of NMDC Limited (NMDC) growing?
The median revenue growth in the sector is +9.8 % a year. That is the yardstick for the growth priced into NMDC Limited (+15.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of NMDC Limited (NMDC)?
The free-cash-flow yield on the price is 4.17 %: that much free cash flow NMDC Limited produces per unit of market value. When it exceeds the discount rate of our models (11.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of NMDC Limited (NMDC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For NMDC Limited it is ₹90.33 per share (as of Nov 4, 2026), against a price of ₹70.40. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is NMDC Limited stock overvalued or undervalued in 2026?
As of Nov 4, 2026, NMDC trades below its calculated fair value: price ₹70.40, fair value ₹90.33, a gap of about +28% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of NMDC?
No. The price is what the market pays today (₹70.40); the fair value is what the company's own numbers justify (₹90.33). For NMDC Limited the two are ₹19.93 per share apart. That gap is exactly why we show both numbers side by side.
How much is NMDC Limited worth?
The market values NMDC Limited at about ₹619B (market capitalisation, as of Nov 4, 2026). Per share that is ₹70.40; our models calculate a fair value of ₹90.33 per share.
What do the bullish and bearish scenarios say about NMDC?
Our models span a range for NMDC Limited: cautious scenario ₹51.65, base ₹90.33, optimistic ₹119.01 per share (as of Nov 4, 2026, price ₹70.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of NMDC?
NMDC Limited trades at a price-to-earnings ratio of 8.3 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹90.33 is built from several models across several years. Other multiples: P/B 1.8, P/S 1.9, EV/EBITDA 5.5.
How solid is the balance sheet of NMDC Limited (NMDC)?
Balance-sheet figures for NMDC Limited (as of Nov 4, 2026): return on equity 23.4%. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is NMDC from its 52-week high?
NMDC Limited trades at ₹70.40, about 27% below its 52-week high of ₹96.04 and 6% above the low of ₹66.35 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹90.33 is for.
Which stocks are comparable to NMDC Limited?
From the same area (Basic Materials) we also value Nucor Corporation, ArcelorMittal S.A, Steel Dynamics, Inc, JSW Steel Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is NMDC Limited stock attractive at the current price?
The data as of Nov 4, 2026: price ₹70.40, calculated fair value ₹90.33 (+28%), Quality Score 66/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of NMDC calculated?
We run NMDC Limited through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of ₹90.33 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. NMDC Limited currently trades 22% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of NMDC Limited (NMDC)?
The closing price on Nov 6, 2026 was ₹70.40. Our model-based fair value is ₹90.33, about +28% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with NMDC Limited right now?
Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (₹51.65 to ₹119.01) leaves room in how you read the outcome. Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.
Where does the earnings growth of NMDC Limited (NMDC) come from?
Earnings per share at NMDC Limited grew +8.9 % a year from 2015 to 2026. Broken into its drivers: revenue per share +15.0 %, EBIT margin −6.3 %, tax rate +1.3 %, residual (interest, one-offs) −0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of NMDC Limited
How large is the market capitalisation of NMDC Limited (NMDC)?
The market capitalisation of NMDC Limited is ₹619B (≈ $6.6B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of NMDC Limited (NMDC)?
The price-to-sales ratio of NMDC Limited is 1.93 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of NMDC Limited (NMDC)?
Earnings per share at NMDC Limited are ₹8.49 (price ÷ EPS = P/E 8.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of NMDC Limited (NMDC)?
The dividend yield of NMDC Limited is 5.0% (payout 41.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of NMDC Limited (NMDC)?
The net margin of NMDC Limited is 23.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of NMDC Limited (NMDC)?
The return on equity (ROE) of NMDC Limited is 23.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of NMDC Limited (NMDC)?
On an EBIT basis the return on assets of NMDC Limited is 28.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of NMDC Limited (NMDC)?
The operating margin of NMDC Limited is 34.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at NMDC Limited (NMDC)?
Revenue at NMDC Limited is growing +0.8% versus a year earlier (3y avg +22.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at NMDC Limited (NMDC)?
Earnings per share at NMDC Limited are growing +0.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does NMDC Limited (NMDC) hold?
NMDC Limited holds more cash than debt, ₹49.8B net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Thin data
Nov 4, 2026