Motilal Oswal has issued a buy rating on NMDC with a target price of ₹98 in its research report dated August 14, 2026. According to the brokerage's analysis, the stock currently trades at 5.4x EV/EBITDA and 1.6x P/BV on FY28 estimate. The target price is based on 6.5x EV/EBITDA on FY28 estimate, reflecting the brokerage's bullish outlook on the iron ore mining company.
NMDC's reported revenue came in line with estimates at ₹68 billion, remaining flat year-on-year but declining 19% quarter-on-quarter during the first quarter of FY27. As reported by Motilal Oswal, muted sequential volumes were offset by better net sales realization (NSR) during the quarter. Iron ore production stood at 15.1 million tonnes, representing a 26% year-on-year increase but a 7% quarter-on-quarter decline. Sales volumes were 11.8 million tonnes, showing a 2% year-on-year growth but a 23% quarter-on-quarter decline.
The company's blended average selling price (ASP) for Q1FY27 stood at ₹5,783 per tonne, declining 1% year-on-year but rising 5% quarter-on-quarter. According to Motilal Oswal's report, iron ore ASP stood at ₹5,790 per tonne, showing an 8% year-on-year increase and 19% quarter-on-quarter rise. The sequential improvement in pricing helped offset the impact of lower volumes during the quarter.
Motilal Oswal maintains its buy rating on NMDC with the ₹98 target price, citing the company's strong fundamentals and growth prospects. The brokerage's valuation methodology is based on 6.5x EV/EBITDA on FY28 estimate, reflecting confidence in the company's operational performance and market position in the iron ore mining sector.
