NMDC - Stock in News looks a good buy!

NMDC has come in many news items and stock looks good at current levels.

• NMDC is in talks with Nippon Steel and Kobe Steel of Japan for partnership in two steel plant projects in Karnataka and Andhra Pradesh.
• The state-owned firm will also be investing Rs.3,000 crore to set up a 12-million tonne per annum pipeline in Chhattisgarh to supply iron ore to its domestic steel customers. http://thehindu.com/business/companies/article503087.ece
• NMDC witnessed a jump of 80% in its first-quarter profit on the back of increased demand of iron ore from steel companies and a rise in prices. The company’s sales rose 90% to Rs 2,400 crore in the first quarter of the current fiscal. http://www.business-standard.com/india/news/nmdc-profit-jumps-80-sales-90-in-q1/400643/
• NMDC said it is in talks to buy coking coal mines from Kolmar in Russia to feed its proposed steel plants in Chhattisgarh and Karnataka. http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/NMDC-in-talks-to-buy-coal-mines-in-Russia/articleshow/6139481.cms

About the company:

• NMDC is a PSU company involved in exploration of iron ore, copper, rock phosphate, lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, beach sands etc. NMDC is the largest iron ore mining company in India with 31.7mt capacity and 1.27bn tonnes of 2P reserves (Proved plus Probable).
• NMDC has the only mechanized diamond mine in the country with a capacity of 1.00 lakh carats / annum at Panna (Madhya Pradesh State).
• India's growing infrastructure needs would need more consumption of steel and demand for Iron Ore would remain stable which can benefit NMDC.

Stock has been in a strong downtrend for nearly 6 months and now (CMP Rs 264) has gone sideways. Move past Rs 275 would be bullish for short-term trend, investors can accumulate the stock in a small way for Rs 290-300 target.