Navratna PSU stock NMDC Ltd on a down trail, fell over 5% on NSE

State-run mineral giant NMDC announced the bonus issue in the ratio of 2:1. The company will allot 586,12,11,700 equity shares of Rs 1 each as bonus shares in the ratio of two new equity shares for every existing equity share held in the company. NMDC stock price has gained over 5% in one month but has fallen more than 13% in the past six months.

The PSU stock has risen 9% year-to-date (YTD) and jumped 110% in three years. NMDC said it had fixed Friday, 27th December 2024, as the ‘Record Date’ to determine the eligibility of shareholders for issuance of the said Bonus Shares.

 The deemed date of allotment shall be Monday, 30th December 2024, for the allotment of said Bonus Shares of the Company. Further, these Bonus Shares will be made available for trading on the next working date of allotment i.e. Tuesday, 31st December 2024, under SEBI circular dated 16th September 2024, NMDC said in a regulatory filing on Tuesday.

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NMDC Ltd is currently trading at Rs 216.82, reflecting a decline of 4.76% on the NSE. Over the past year, the stock has appreciated by 17.26%, in contrast to a 13.71% increase in the NIFTY index and an 18.99% rise in the Nifty Metal index. Today marks the fifth consecutive session of decline for NMDC Ltd. 

The Nifty Metal index, of which NMDC is a constituent, has seen an increase of approximately 2.74% over the last month and is currently quoted at 9,347.75, down 1.12% for the day. Today, NMDC's trading volume stood at 22.73 lakh shares, significantly lower than the daily average of 94.36 lakh shares over the past month. 

The stock is currently exhibiting a mildly bearish trend, having transitioned from a mildly bullish phase following a downgrade, resulting in a return of -2.21%. Technical indicators such as MACD, KST, and DOW also suggest a bearish outlook. 

Despite these challenges, NMDC Ltd boasts strong management efficiency, evidenced by a return on equity (ROE) of 23.57% and a low debt-to-equity ratio of 0. The company has a market capitalization of Rs 68,181 crore, making it the second-largest player in its sector, contributing 17.73% to the industry.

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