NMDC stock price:Amid the fluctuations in the stock market, there was a stormy rise in the shares of government company NMDC Limited on Friday. During trading, the shares of Navratna company NMDC Limited rose 2.50% and crossed the level of Rs 220. Experts are also looking bullish on this stock.

What is the target price of brokerage

Domestic brokerage Nuvama Institutional Equities said in a note that the shares of Navratna NMDC Limited can go up to Rs 286. The brokerage has given this target for the next 12 months. Along with this, a buy rating has also been given. This means that it is advisable to buy the stock. Let us tell you that the 52-week high of the stock on the BSE index is Rs 286.35.

What the brokerage said

According to the brokerage, the PSU stock has been under pressure amid lower volumes from April to August as well as falling iron ore prices due to labour strikes, heavy monsoon and some logistical constraints. Nuvama said global iron ore prices have fallen below $90 per tonne and are expected to average $105-110 per tonne in FY25 and 26. Nuvama expects logistical constraints to ease in the second half of FY25 and thus volume growth will increase by 13 per cent to 47 million tonnes (up 6 per cent year-on-year) in the remaining months.

investment plan of the company

NMDC Limited is investing Rs 2200 crore for setting up slurry pipeline and new processing plant in FY 2025. The company said that this investment is to achieve the target of increasing the production capacity to 100 million tonnes by the year 2030. This expansion will significantly improve NMDC's infrastructure and operations, strengthening its global position and contributing towards India's industrial development.