NMDC Ltd announces 2:1 bonus, shares fell over 2%, here to know what analysts say
Despite these challenges, NMDC's revenue increased by 20% year-on-year to Rs 4,807 crore for the quarter. NMDC shares are trading 3.80% lower at Rs 224.08, 22% below their recent peak of Rs 286.35.
NMDC Ltd announces 2 1 bonus, shares fell over 2, here to know what analysts say
Shares of state-run NMDC Ltd. were trading down by as much as 4% on Tuesday, November 12, making it the top loser on the Nifty Metal index. The company's EBITDA fell 39% quarter-on-quarter due to weaker realizations, increased costs, and lower volumes. Additionally, costs excluding royalties rose significantly.
Despite these challenges, NMDC's revenue increased by 20% year-on-year to Rs 4,807 crore for the quarter. NMDC shares are trading 3.80% lower at Rs 224.08, 22% below their recent peak of Rs 286.35. Notably, the stock has gained 6% so far in 2024.
Read Also : IndianOil Wins Big at FICCI Indian Sports Awards 2024 for Championing Sports DevelopmentThe board of NMDC has approved a bonus issue of equity shares in the proportion of 2:1, which means for every one share investors hold in the company, they will get two additional shares. This is the first instance in the last 16 years that NMDC will be considering a bonus issue of shares.
"Issuance of Bonus Shares to the shareholders of the Company in the ratio of 2:1, i.e. 2 (two) Bonus Equity Shares of face value Re 1 each fully paid up; for every 1 (One) existing equity share of face value of Re 1 each fully paid up, to the eligible members of the company as on the record date, subject to the approval of the shareholders of the company," NMDC said in a filing.
Read Also : NTPC Talcher Kaniha Shines with Prestigious Platinum AwardGlobal brokerage firm Citi maintains a 'Sell' recommendation on NMDC Ltd, with a price target of Rs 195 per share. Another brokerage house JPMorgan maintains an 'Underweight' rating on NMDC, with a price target of Rs 210 per share. The second-quarter EBITDA miss was driven by unfavorable inventory impact and higher other expenses. The brokerage expects NMDC shares to react slightly negatively given the EBITDA miss.
Read Also : WIPS WCL receives Best Activity AwardNews Must Read
- IndianOil Wins Big at FICCI Indian Sports Awards 2024 for Championing Sports Development
- Cochin Shipyard Limited signs contract with Defence Ministry
- ONGC launched 35-seater Electric buses in Mumbai
- BSNL tie up with SBI for Payment Gateway Partnership
- ONGC Videsh acquires 0.615% Stake in ACG and 0.737% stake in BTC, Azerbaijan
- Numaligarh Refinery Limited achieved milestone
- GAIL signs long-term contract with “K” LINE for LNG ship
- RVNL stands as Lowest bidder from PSPCL
- NTPC CVO Rashmita Jha Appointed as Additional CVO for REC Ltd
- SAIL and John Cockerill India join hands to drive innovation and green steel technologies