NMDC vs NMDC Steel Which Is More Reliable?

NMDC (National Mineral Development Corporation) and NMDC Steel are two separate entities within the mining and steel industries in India. NMDC is a leading public sector mining company, primarily engaged in the exploration, exploitation, and production of iron ore. On the other hand, NMDC Steel is a subsidiary of NMDC, involved in the production of steel using the raw material supplied by NMDC. Both companies play a significant role in contributing to the growth and development of the Indian economy through their operations in the mining and steel sectors.

NMDC or NMDC Steel?

When comparing NMDC and NMDC Steel, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NMDC and NMDC Steel.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NMDC has a dividend yield of 3.11%, while NMDC Steel has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NMDC reports a 5-year dividend growth of -5.16% year and a payout ratio of 0.00%. On the other hand, NMDC Steel reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NMDC P/E ratio at 11.58 and NMDC Steel's P/E ratio at -6.53. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NMDC P/B ratio is 2.66 while NMDC Steel's P/B ratio is 0.89.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NMDC has seen a 5-year revenue growth of 0.83%, while NMDC Steel's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NMDC's ROE at 23.50% and NMDC Steel's ROE at -13.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹227.05 for NMDC and ₹46.60 for NMDC Steel. Over the past year, NMDC's prices ranged from ₹166.75 to ₹286.35, with a yearly change of 71.72%. NMDC Steel's prices fluctuated between ₹40.95 and ₹73.70, with a yearly change of 79.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.