Summary Ashapura Minechem Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Ashapura Minechem Ltd. (Ashapura) is a mine owner, processor and exporter of bentonite. It mines and processes bauxite, bentonite and other minerals such as bleaching clay and calcium carbonate. T...
NMDC: Strong result, but priced in; Maintain Neutral (NMDC IN, Mkt Cap USD4.1b, CMP INR111, TP INR124, 12% Upside, Neutral) Net sales declined 27% YoY and 29% QoQ to INR48b in 1QFY23 (inline). Iron ore sales were down 14% YoY and 36% QoQ to 7.8mt. The sharp correction in 1QFY23 sales volume was on account of a reduction in steel production after the imposition of export duty on steel and pellets. EBITDA contracted by 55% YoY and 29% QoQ to INR19b, but was 17% ahead of our estimate, despit...
The independent financial analyst theScreener just lowered the general evaluation of NMDC (IN), active in the General Mining industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered moderately risky. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Slightly Negative. As of the analysis date November 16, 2021, the closing price was INR 139.45 and its...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
(NMDC IN, Mkt Cap USD7.1b, CMP INR179, TP INR215, 20% Upside, Buy) NMDC is a play on strong iron ore prices and volumes, well-reflected in its 4QFY21 result – EBITDA at INR42.4b (+53% YoY) and EBITDA/t at INR3,825 (+113% YoY) were the highest ever. We raise our FY22/FY23 EBITDA forecast by 61%/38% to factor in higher pricing and volumes. Reiterate Buy. EBITDA up 53% YoY on higher pricing and better volumes Revenue / EBITDA / Adjusted PAT rose 57%/53%/51% QoQ (in-line) to INR68.5b/I...
Q3FY20 result highlights- lower realisations suppress EBITDA NMDC reported in-line EBITDA of Rs15.9bn, down 26% yoy primarily due to ~14% yoy lower iron ore prices (Rs3,557/t). EBITDA is further impacted by ~3.4% yoy lower volumes (8.4mt) due to absence of Donimalai mine at Karnataka. Average domestic iron ore realisation (ex-royalty) was down by Rs820/313 yoy/qoq to Rs2,578/t. Sales volumes at 8.4mt were down 3.4% yoy primarily due to non-operation of Donimalai mine during Q3FY20 (Donimala...
NMDC: Miss led by lower-than-expected sales volumes (NMDC IN, Mkt Cap USD5b, CMP INR116, TP INR147, 26% Upside, Buy) Production recovers post heavy monsoon season NMDC's 3QFY20 results highlight the rebound in production and sales post a heavy monsoon season. The shift to a lower tax rate also boosted profits. While we expect the recent price hikes to aid profitability, we remain conservative on prices heading into FY21. The company's upcoming steel plant should be valuable. Maintain Bu...
Q2FY20 result highlights- Absence of Donimalai volume and lower prices hit profits NMDC reported in-line EBITDA of Rs10.6bn, down 16% yoy primarily due to ~13% yoy lower volumes (5.8mt) on account of suspension of mining operations at Donimalai. EBITDA is further impacted by ~4% yoy lower domestic iron ore prices (Rs2,891/t). Average domestic iron ore realisation (ex-royalty) was down by Rs108/Rs25 yoy/qoq to Rs2,891/t. Export realisation stood at Rs6,371/t, up 5% qoq. NMDC's export realisat...
NMDC: Miss led by lower exports; Valuations attractive; Maintain Buy (NMDC IN, Mkt Cap USD4.4b, CMP INR104, TP INR126, 21% Upside, Buy) 2QFY20 adj. EBITDA was down 39% QoQ to INR11.7b (11% below est. INR13.1b) on the back of lower export volumes at 0.52mt (v/s est. 0.7mt). The QoQ drop in EBITDA was led by lower overall volumes. PBT declined 40% QoQ to INR11.9b while Adj. PAT declined 40% QoQ to INR8.2b (14% miss). Production was down 41% QoQ (down 5% YoY) to 5mt, while sales declined 33% ...
Event The Central Government of India has amended Mineral (mining by Government Company) Rules, 2015 by exercising power under MMDR (Amendment) Act, 2015. It has substituted word ‘may’ with ‘shall’ in the rules 3(2) and 3(4). This amendment has made mandatory for state governments to extend the mining leases held by Government company. The rules shall come into effect w.e.f 27th Sep, 2019. Details In Aug 2019, Karnataka Govt. cancelled the lease of 7-mtpa Donimalai mine and put the mine und...
Event Govt. of Karnataka did not renew the mining lease of Donimalai mine of NMDC and starts preparing to put the mine under auction. Details Earlier, Karnataka Govt had renewed the lease in Nov 2018 with imposition of a special condition that NMDC has to remit 80% of sales value as lease rent which was being contested by NMDC. Later, Karnataka High Court ruled in favour of NMDC and set aside the special condition imposed by Karnataka Govt. Post this, Karnataka Govt. has decided to cancel ...
We present key takeaways from NMDC’s Q1FY20 post result concall. No uncertainties on renewal of mining leases in future: Karnataka HC’s decision in favour of NMDC has set aside the possibilities of imposition of special conditions on NMDC at the time of renewal of mines in Chhattisgarh and Karnataka. Company has already applied for the renewal of mines at Chhattisgarh which are due in March 2020 No timeline given on Donimalai mine restart: Management informed that it is working with Karnatak...
Q1FY20 result highlights- Volume led growth Higher than expected export realisations led to a 4% beat to our EBITDA estimates. · NMDC reported better than expected EBITDA of Rs18.7bn, up 31% yoy primarily due to ~28% yoy higher volumes (8.7mt) and ~5% yoy higher realisation (Rs3,705/t, up 5% yoy) which in turn was higher due to firm domestic prices and higher export realisations (Rs6,072/t). · Average domestic iron ore realisation (ex-royalty) was up by Rs89/Rs32 qoq/y...
NMDC: Better realizations support performance; Donimalai restart may take time; Valuations attractive (NMDC IN, Mkt Cap USD4.5b, CMP INR105, TP INR128, 22% Upside, Buy) 1QFY20 adj. EBITDA of INR19.3b (-4% QoQ) was in line with our estimate of INR18.9b. The sequential decline in EBITDA was due to lower volumes, partly offset by higher realizations. Adj. PAT was down 6% QoQ at INR12.8b (in-line). Production was down 20% QoQ (+21% YoY) to 8.4mt, while sales declined 15% QoQ (+28% YoY) to 8....
Event The Karnataka High Court ruled in favour of NMDC today and quashed the Karnataka Govt’s demand to pay 80% of iron ore value as lease rental while renewing NMDC’s Donimalai iron ore mine for 20 years on 3rd Nov 2018. Key Details NMDC’s Donimalai mine has 7mtpa mining capacity. NMDC stopped mining at this mine from 4th Nov 2018 after the state government has renewed the lease of the mine for 20 years with a condition that NMDC has to pay 80% of iron ore value as lease rental. The state...
We remain positive on NMDC and expect potential upside of ~60%, factoring in favourable outcome on Donimalai mine and commencement of its 3mtpa steel plant by FY20-end. At CMP, the stock is trading inexpensive at 4.1x FY20E EV/EBITDA. We reiterate Outperformer on the stock with a target price of Rs168. Temporary disruption at Chhattisgarh mines; No impact on FY20 volumes: NMDC has restarted operations in Kirandul complex after it halted mining on 7th June amid protest by local tribals. The prot...
NMDC: Operational decline as expected on lower realizations; Donimalai mine lease resolution to drive re-rating; Maintain Buy (NMDC IN, Mkt Cap USD4.5b, CMP INR103, TP INR136, 33% Upside, Buy) 4QFY19 adj. EBITDA of INR20b (-12% QoQ) came in line with our estimate of INR19.6b. EBITDA is adjusted for (a) expected credit loss of INR742m, which is non-recurring and (b) INR1.65b of provision write-backs. The QoQ drop in EBITDA was driven by lower realizations. Adj. PAT declined 10% QoQ to INR13....
Q4FY19 result highlights- Good show amid volume loss of Donimalai Lower than expected costs led to a beat of 13% to our EBITDA estimates. Despite no volume from Donimalai mine and lower iron ore prices, NMDC reported adj EBITDA of Rs19.6bn, down 9% yoy (adj EBITDA/t of Rs1,926, down 6% yoy) due to lower iron ore prices (down 3.4% yoy to Rs3,528/t). Reported EBITDA of Rs 20.9bn includes one off reversal of Rs1.65bn excess royalty paid in earlier years (starts computing on sales volume now fo...
An expected positive outcome on Donimalai mines and a favourable macro environment (which has caused iron ore prices to firm up) have led to 15% rise in NMDC’s share price from its lows in Feb 2019. We see further >50% upside post the final outcome on Donimalai mines (which we believe should be favourable) and commencement of the company’s 3mtpa steel plant (by FY20-end). Post completion of buyback worth Rs10bn (Rs98/sh) in Feb 2019, we expect NMDC to declare an interim dividend of ~Rs5/sh in Ma...
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