NMDC Full Form, Functions, and Latest Financial Details

What is the Full Form of NMDC? – NMDC Full Form

 The full form of NMDC is National Mineral Development Corporation. It is a public sector company and falls under the Mining Sector. NMDC Ltd. was founded on November 15, 1958. It was incorporated under the Companies Act. It is the only mechanized diamond mine in the country. The Government of India owns NMDC Ltd. through the Ministry of Steel. NMDC is the largest exporter & producer of iron ore in India. They are involved in the research of a wide range of minerals. This includes iron ore, copper, rock phosphate, limestone etc. NMDC produces more than 30 million tones of iron ore from its Karnataka and Chhattisgarh mines. It also manages a diamond mine at Panna whose annual output is over one lakh carats. NMDC has done pioneering research for developing iron ore mines in Karnataka. It covers regions like Donimalai, Kudremukh, Kumaraswam, Bababudan, and Ramandurg. NMDC developed the Donimalai iron ore mine to export iron ore to Japan and South Korea. Bailadila iron ore mine is the first large scale open cast mechanised iron ore mine in India.

Main objectives of NMDC : –

• Meeting the rising mineral demands of the domestic as well as foreign markets.
• Increasing operations in the field of mineral processing to meet global requirements.
• Raising iron ore output to 67 MTPA by 2021-22
• Setting up the Nagarnar Steel Plant and achieve excellence in the field.

Key Personnel’s NMDC India Limited. :

• Shri Sumit Deb – Chairman – Managing Director
• Shri P.K. Satpathy – Director (Production)
• Shri Amitava Mukherjee – Director (Finance)
• Shri Alok Kumar Mehta – Director (Commercial)
• Shri Somnath Nandi – Director (Technical)
• Smt. Rasika Chaube – Director
• Smt. SukritiLikhi – Director

Shareholding Pattern of NMDC :

Profit & Loss Account of NMDC Ltd. (Figures in Rs. Crores) :

Recommended Read: Learn to Analyse Income Statement of a Company 

Balance Sheet of NMDC Ltd. (Figures in Rs. Crores) :

Recommended Read: How to Analyse a Balance Sheet of a Company

NMDC Ltd. Key Financial Ratios :

NMDC Ltd. Mutual Funds and Holdings :

Quick Financial Overview of NMDC :

Samco’s Ratings for NMDC Ltd. : NMDC’s Share Page: 3 out of 5 stars (Stock Rating Date: 17th Aug 2021) Check current rating of NMDC Share Price : https://www.samco.in/stocks/nmdc-ltd-share-price

NMDC Ltd.’s Pros and Cons:

Pros:  High Pricing Power : The business enjoys relatively high pricing power. The administrative control is able to withstand competitive pressure. The same works as a great moat for equity shareholders of the company. Zero Debt : The company has a negligible debt to equity ratio of 0.02. Thus, the equity shareholders carry lower risk of holding the stock. Cons: Poor Cash Flow Conversion : The business has a very poor cash conversion ratio. Only 33.12% of operating earnings are converted into operating cash flow. This implies that increase in profits has not translated into higher cash flows. Capital Intensive Business : The company operates an extremely capital-intensive business with a low asset turnover of 0.60. This impacts return on equity negatively and reduces shareholder returns. Any growth in the business must be funded either by increasing borrowings or diluting share holding because of it capital-intensive nature. Both of these negatively impacts shareholder value and returns. Visit NMDC Ltd.’s share page to read more about its pros and cons.

Peer Comparison of NMDC Ltd. :

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