metals

NMDC

NMDC · Nifty 50

88

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionmetals sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score80/100 (STRONG). 2 positive flags, 6 concerns.
Historical Context14 similar technical setups. Average outcome: -11.3% decline. 0% positive.

Fundamental

80/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

NMDC scores 80/100 on fundamentals (strong). NMDC: BROAD EXPANSION regime.

Fundamental Score: 80/100 · STRONG · 3 signals detected

DuPont Analysis

ROE 21.2% broken into three drivers. Each shows how efficiently the company generates returns.

ROE21.2%=
22.1%Net Margin
×
0.7xTurnover
×
1.4xLeverage

ROE of 21.22% is strong margin-driven and stable. Net margin of 22.1% × asset turnover of 0.68x × leverage of 1.4x.

What This Means

Net margin of 22.1% means the company keeps ₹22.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.68x means the company efficiently uses its assets to generate revenue. Leverage of 1.4x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

47.9%

Operating

31.8%

Net

22.1%

declining

Gross margin 47.9% → operating margin 31.8% → net margin 22.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.

Financial Health

Earnings Quality

WEAK

Cash flow only covers 0.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

COMFORTABLE

Interest covered 58.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.6x is low — balance sheet has capacity.

Free Cash Flow

STRONG

FCF margin at 5.6% — moderate. Generating cash after investments.

Peer Comparison

Key Watchpoints

🟢

Breaks above ₹92 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹84 (-5%)

Further downside risk

🟢

Metals sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
➡️ Leverage Slowly Rising: Debt growing faster (49.8%) than equity (14.7%)
⚠️ Low Earnings Quality: Cash flow only 0.7x earnings — weak cash conversion

Risk Flags

🔴 1 Critical⚠️ 5 Warning2 Positive8 total flags
🔴Cash covers only 1% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️92% of debt is short-term
Balance Sheet

High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.

⚠️Working capital changes are 42% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Overall governance risk: 8/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Audit risk elevated: 9/10
Governance

Potential accounting concerns. Cross-check with earnings quality flags.

⚠️Board risk elevated: 8/10
Governance

Governance structure concerns. Independent director representation may be weak.

Receivables decreasing — 9.7% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

High promoter holding: 61%
Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 5 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
Our margin analysis (declining) matches news reports of cost/margin pressure

50 articles scanned for fundamental themes

Facts

P/E Ratio
10.7UNAVAILABLE
P/B Ratio
2.3HIGH
Market Cap
₹7994399.1L CrHIGH
From 52W High
90% of high
Sector Peers
10
NMDC Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight