NMDC shares were trading at 66.50% down compared to its closing price of ₹214.45 (unadjusted) yesterday. Hence this difference could have been brought about by certain brokerage trading apps that post the unadjusted share price.
NMDC Ltd shares experienced a sharp dip of 66.50% compared to yesterday’s unadjusted closing price of ₹214.45, as the stock turned ex-bonus in a 2:1 ratio today. On a proforma basis excluding the bonus issue, the shares was up 0.60 % at ₹71.8 on NSE. This difference might be due to some brokerage trading apps of showing the unadjusted price from previous day so as to give an impression of the stock decrease of about 67%.
Under the 2:1 bonus issue warrants every existing NMDC shareholder to be granted two new shares for every NMDC share they own. While bonus shares can be at par value, current face value of equity shares is used in issuing bonus shares, thus expanding the number of existing shares in the market. This corporate action leads to the erosion on free reserves and surplus, enhanced liquidity position and reduction of per share, earnings per share and book value.
Today being the 27th December shall be used as a record date for the qualified shareholders for the bonus issue which shareholders are expecting to be credited. This is NMDC’s second bonus issue in the 2:is 1:1 while the last one was one year ago in May this year 2008.The Π imaging efficiency indicates an increasing trend in its usage as a surrogate for anatase, and this could be due to the fact that its. With a firm division record, it also tends to receive an “ADD” from ICICI Securities.
Minimizing the risk of an oversupplied market, Sharekhan believes that the dependency of India’s steel sector will follow the ballooning growth to eye an 8% CAGR in volumes for NMDC from FY 24 to FY 27. But the domestic brokerage warned that gross profit margins may be under pressure because of softness in the steel demand. Despite the fact that NMDC has exercised such a price increase raising lump and fines price by 17 – 18%, such an increase will not be sustainable in the long run.
Emerging volumes reflecting India’s steel demand over the next couple of years Sharekhan expects NMDC to post good volume growth but has a ‘Hold’ due to its negligible influence on pricing. The stock has been traded at 5.3 FY26 and 4.8, FY27EV/EBITDA.
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