Thursday, July 08, 2010

NMDC - Stock in News looks a good buy!

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

1 comment:

Ram Mohan said...

Sir, can you please give your views about MARKSANS Pharma? Is it a good buy and hold for 10+ years? I read that it has acquired a lot of overseas companies. If possible, please give your views.