Street cautious on NMDC despite volumes, realisations gain; stock falls

The momentum seen in the first quarter is continuing in the current quarter as well

Robust 27 per cent growth in shipments for NMDC in the first four months of FY20 and firm pricing for August after a strong Q1 performance were not enough for a vote of confidence from the Street. At present, the stock is trading 13-14 per cent below its early July highs.

Strong output numbers and growth in dispatches continue, even after mining disruptions in Karnataka. The company announced a 24 per cent jump in production and 27 per cent increase in dispatches in the first four months of FY20. The momentum seen in the first quarter is continuing in the current