2.70% Dividend Yield: Buy PSU Mining Dividend Stock, TP Rs 280: Motilal Oswal

Motilal Oswal has recommended buy rating to Navratna public sector undertaking (PSU) NMDC share with target price of Rs 280 apiece. Last trading price of NMDC Ltd shares on BSE is Rs 244.40 apiece. If you buy NMDC share now, you can fetch potential gain of 14.57.

The company also recommended interim dividend of Rs 5.75 apiece and the record date has been set as February 27, 2024. NMDC shares rallied 109% in last 6-months. Check details below:

NMDC Recommends Interim Dividend: As per the BSE filing of the company, the Board of Directors of the PSU announced an interim dividend of Rs 5.75 per equity share of face value of Re 1/- each for the financial year 2023-24. Record date for the payment of dividend is set on February 27.

NMDC Dividend Yield: The company announced 44 dividends since August 28, 2002. In the last 12 months, NMDC announced an equity dividend amounting to Rs 6.60 per share. If the current share price of Rs 244.40 is taken into consideration, NMDC offers dividend yield of 2.70%.

NMDC Q3 Results: The company declared a surge of 62.6% in its consolidated net profit for the quarter ended December 2023 as against the net profit in the corresponding quarter, amid robust domestic steel demand. The company's earnings jumped to Rs 1,469.73 crore for the three periods ended December 2023 as compared to Rs 903.89 crore announced in the similar period last year. Sequentially, the PSU's profit climbed 43% from Rs 1024.86 crore in the preceding quarter. NMDC's consolidated revenue from operations soared 45% Year-on-Year to Rs 5409.90 crore and rallied 34.7% QoQ.

About: NMDC, a government-owned company, is India's largest iron ore producer. NMDC is operating four iron ore mechanised mines viz., Bailadila Iron Ore Mines - Kirandul Complex (Dep-14, 14 NMZ, 11B and 11C), Bailadila Iron Ore Mine - Bacheli Complex (Dep-5,10 and 11A) in Chhattisgarh, Donimalai Iron Ore Mine and Kumaraswamy Iron Ore Mine in Karnataka. The company also produces and sells diamonds, sponge iron, and wind power.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.