NMDC shares slipped over 2% in morning trade after leading brokerages Citi and Kotak Institutional Equities reiterated their ‘Sell’ calls, highlighting risks of further price correction in the domestic iron ore market.
Citi has set a target price of ₹60, while Kotak has pegged it even lower at ₹55. Citi noted that NMDC’s current price premium to export parity stands at over 40%, significantly above the FY25 average of 20%. With domestic steel prices declining and imports rising in May 2025 compared to April, the brokerage expects this premium to normalize.
Adding to the pressure, Lloyds Metal and Energy plans to increase its iron ore capacity from 10 million tonnes to 25 million tonnes in FY26. Citi also flagged a modest global iron ore surplus, especially with Simandou volumes expected to enter the market in 2026.
Kotak emphasized NMDC’s recent 2.5% month-on-month price cut in June, and noted that domestic prices are now just 8% below import parity — well below the long-term average of 20%. The brokerage expects further cuts, citing weak steel prices and rising merchant mining output as additional downside risks.
With concerns over domestic and global supply, and weakening pricing power, NMDC could face headwinds in the near term, both brokerages warned.
NMDC shares opened at ₹70.20 and touched an intraday high of ₹70.24, while the low stood at ₹68.50. The stock continues to trade within its 52-week range, with a high of ₹91.87 and a low of ₹59.53.
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