Navratna PSU to consider dividend on THIS date, stock jumps 7% in five days despite 16% drop in 1 year | Stock Market News

NMDC Dividend: NMDC announced on Friday, March 7, that the public sector undertaking (PSU) will consider an interim dividend for the current fiscal 2024-25 (FY25) at its board meeting to be conducted on March 17, 2025. The Navratna PSU stock has extended its winning streak for the last five trading sessions with a seven per cent rise despite suffering a 16 per cent price rout in one year.

NMDC has delivered multibagger returns of 114 per cent in the last five years. The multibagger Navratna PSU stock has been under pressure, mirroring weak market sentiment. Yet, D-Street analysts remain bullish on India’s largest iron ore producer and exporter, poised for solid growth in the next few years.

Also Read: NMDC leadership update: Amitava Mukherjee appointed chairman, MD of India’s largest iron ore producer

NMDC to consider interim dividend on March 17

“….A meeting of the Board of Directors of the company is scheduled to be held on Monday, March 17, 2025, to consider, inter alia, a declaration of the interim dividend for Financial Year 2024-25 (FY25),” said the Navratna PSU in a regulatory statement filing to the stock exchanges on Friday.

“In pursuance of the SEBI (Prohibition of Insider Trading) Regulations, 2015 and its amendments, and the company’s Internal Code of Conduct for Prevention of Insider Trading, the trading window for dealing with securities of the company is closed for all insiders, including Designated Persons and their immediate relatives from March 7 to March 19, 2025, i.e. 48 hours after the date of the board meeting for considering the interim dividend,” added NMDC.

NMDC has declared 44 dividends since August 28, 2003. In the past 12 months, NMDC has declared an equity dividend amounting to ₹1.50 per share. At the current share price of ₹67.13, NMDC’s dividend yield is 2.23 per cent. Adjusting for Bonuses and splits, the dividend yield is 0.74 per cent.

Also Read: NMDC share price drops 17% in last 1 year but experts remain bullish on this PSU stock. Here’s why

NMDC Share Price Trend

On Friday, shares of NMDC opened at ₹66.99 against a previous close of ₹68.94 and gained 1.8 per cent to hit an intraday high of ₹68.20 before settling 0.19 per cent higher at ₹67.07 apiece on the BSE. According to stock exchanges, the PSU commands a market cap of ₹58,966.72 crore. The multibagger stock has gained 4.29 per cent in one month and 1.35 per cent year-to-date (YTD).

NMDC hit a 52-week high of ₹95.35 on May 21 last year and touched its 52-week low of ₹59.70 on January 13 this year. Over the last year, the mineral stock has declined 16 per cent. It has witnessed notable volatility lately, swinging between gains and losses on a monthly scale since September last year.

The recent fall in the stock has brought down its valuation. NMDC on February 6 reported a 29 per cent year-on-year growth in its consolidated net profit for Q3FY25 to ₹1,896.66 crore compared to ₹1,469.73 crore in the same quarter last year. Revenue from operations rose 21.40 per cent to ₹6,567.83 crore in the December quarter compared to ₹5,409.90 crore in the corresponding quarter last year.

Also Read: Gensol Engineering to consider 1:10 stock split, fundraising via issuance of fresh equity

NMDC Leadership Update

NMDC announced on March 6, that it has appointed Amitava Mukherjee as the new Chairman and Managing Director (CMD) of the public sector undertaking (PSU). Mukherjee has held the additional charge of CMD of the PSU until now.

“Amitava Mukherjee has been appointed as CMD on the Board from the date of his assumption of the charge of the post, i.e. March 6, 2025, till the date of his superannuation, i.e. February 29, 2028, or until further orders, whichever is earlier,” said NMDC in a regulatory filing to the stock exchanges.

Joining NMDC as Director (Finance) in November 2018, Mukherjee held the additional charge of CMD from March 2023 onwards. He also serves as the Chairman of NMDC Steel Ltd and Legacy Iron Ore Ltd. NMDC produces over 45 million tonnes of iron ore from three mechanized mines in Chhattisgarh and Karnataka.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.