NMDC Steel Limited got listed on the stock exchanges BSE and NSE on February 20, 2023, after the demerger of NMDC’s steel business. In this article, we will explore NMDC Steel’s growth potential and the NMDC Steel share price target 2025 to 2050.
About NMDC Steel
NMDC Steel Limited (NSL) is a government-owned steel company in India under the Ministry of Steel. The company operates a large steel plant in Nagarnar, Chhattisgarh, with a production capacity of 3 million tonnes per year.
NMDC Steel Business Model
- Iron Ore to Steel: NMDC Steel processes iron ore into steel, which is processed into high-quality finished steel products such as hot rolled coils, plates, and sheets.
- Supply to Government Projects: NMDC Steel provides steel for public works such as bridges, railroads, and roads.
- By-product Sales: Steel production generates by-products such as slag and gases. These are sold to cement and chemical companies.
NMDC Steel Fundamental Analysis
| Stock Name | NMDC Steel Ltd. |
|---|---|
| NSE Symbol | NSLNISP |
| Market Cap | ₹ 11,635 Cr. |
| 52W High | ₹ 67.4 |
| 52W Low | ₹ 28.4 |
| Stock P/E | – |
| Book Value | – |
| Dividend Yield | 0.00 % |
| ROCE | -13 % |
| ROE | -16.6 % |
| Face Value | ₹ 10.0 |
| Industry PE | 22.1 |
| Price to book value | – |
| Debt to equity | 0.45 |
| PEG Ratio | – |
| Quick ratio | 0.28 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 60.79% | 60.79% | 60.79% |
| FIIs | 4.26% | 4.64% | 4.60% |
| DIIs | 19.99% | 16.95% | 16.03% |
| Public | 14.95% | 17.60% | 18.58% |
| No. of Shareholders | 6,72,431 | 7,34,975 | 8,00,150 |
Key Factors Driving NMDC Steel Future Growth
- Government Services: NMDC Steel benefits from government policies promoting domestic steel production and building construction.
- Rising Steel Demand: As industries such as construction, automotive, and factories develop the demand for steel rises, allowing NMDC Steel to expand its market.
- Strong Raw Material Supply: NMDC Steel has access to high-quality iron ore, reducing reliance on external suppliers and making reliable results.
- Capacity Expansion: NMDC Steel is growing its production capacity to meet rising demand and improve its market position.
- Technological Advancements: NMDC Steel employs cutting-edge technology to increase efficiency, lower costs, and produce high-quality steel.
- Ship Opportunities: As global steel demand rises, NMDC Steel has the opportunity for growth into new markets, generating more money.
- Focus on The environment: NMDC Steel is working to reduce carbon emissions by applying eco-friendly processes that align with global environmental goals.
- Cost Quality: NMDC Steel’s efforts to reduce production costs and successfully manage expenses lead to increased profitability.
- Infrastructure Development in India: Government projects for roads, railways, and development increase demand for NMDC Steel products.
- Strategic Location: The NMDC Steel plant is close to raw materials and key markets, lowering transportation costs and increasing supply chain quality.
- Growing Domestic Market: India’s expanding economy and development generate regular demand for steel, which benefits NMDC Steel.
- Research and development: NMDC Steel is investing in development to create new steel grades and improve processing.
- Demand and Market placement: NMDC Steel is increasing its market presence by fighting with domestic and global steelmakers using quality and pricing plans.
- Rules Change: Changes in trade policies, import-export duties, and ease of doing business can all help NMDC Steel’s growth.
- Growth Plans: NMDC Steel may investigate new product lines and business opportunities in order to reduce risks and increase revenue sources.
Pros of NMDC Steel
- Low Debt Levels: NMDC Steel’s debt-to-equity ratio is 0.45, which indicates that the company is less dependent on debt, which reduces its financial risk.
- Increase in Institutional Confidence: DIIs have increased their holding to 16.03% in March 2025 from 16.02% in December 2024, while FIIs have increased their holding to 4.60% in March 2025 from 4.58% in December 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of NMDC Steel
- Low Return on Equity (ROE): NMDC Steel’s 5-year average ROE is -7.01%, which shows that it is not using shareholders’ funds efficiently to generate profits.
- Low Interest Coverage Ratio: The interest coverage ratio of NMDC Steel is -5.19, which shows that the company is struggling to pay interest.
NMDC Steel Ltd Balance Sheet
| Particulars | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Equity Capital | 2,931 | 2,931 | 2,931 |
| Reserves | 14,118 | 12,558 | 10,184 |
| Borrowings | 3,842 | 6,662 | 5,909 |
| Other Liabilities | 4,678 | 7,218 | 9,446 |
| Total Liabilities | 25,568 | 29,368 | 28,470 |
| Fixed Assets | 1,118 | 20,273 | 20,131 |
| CWIP | 19,545 | 1,215 | 717 |
| Investments | 0 | 0 | 0 |
| Other Assets | 4,904 | 7,881 | 7,621 |
| Total Assets | 25,568 | 29,368 | 28,470 |
By the end of 2025, the NMDC Steel share price is expected to be around ₹50 in normal conditions. In a bear market, it might be ₹35, and in a bull market, it may go up to ₹60.
| NMDC Steel Share Price Target 2025 | Rupees (₹) |
|---|---|
| Bear Market | 35 |
| Normal Market | 50 |
| Bull Market | 60 |
In 2026, the NMDC Steel share price is expected to be around ₹60 in a normal situation. In a bear market, it might be ₹40, and in a bull market, it may cross ₹80.
| NMDC Steel Share Price Target 2026 | Rupees (₹) |
|---|---|
| Bear Market | 40 |
| Normal Market | 60 |
| Bull Market | 80 |
According to our analysis, the NMDC Steel share price is expected to be around ₹75 in 2027. In a bear market, it might be ₹45, and in a bull market, it may cross ₹100.
| NMDC Steel Share Price Target 2027 | Rupees (₹) |
|---|---|
| Bear Market | 45 |
| Normal Market | 75 |
| Bull Market | 100 |
According to our analysis, the NMDC Steel share price may trade near ₹90 by 2028; bearish conditions could pull it down to ₹50, while a strong bull run might lift it to ₹130.
| NMDC Steel Share Price Target 2028 | Rupees (₹) |
|---|---|
| Bear Market | 50 |
| Normal Market | 90 |
| Bull Market | 130 |
Under normal conditions, the NMDC Steel share price might hit ₹110 by 2029. A bearish trend could lower it to ₹55, whereas a bullish surge could raise it to ₹170.
| NMDC Steel Share Price Target 2029 | Rupees (₹) |
|---|---|
| Bear Market | 55 |
| Normal Market | 110 |
| Bull Market | 170 |
In a normal situation, the NMDC Steel share price is projected to be approximately ₹130 in 2030. In a bear market, the value may be as low as ₹60, while in a bull market, it may rise to ₹500.
| NMDC Steel Share Price Target 2030 | Rupees (₹) |
|---|---|
| Bear Market | 60 |
| Normal Market | 130 |
| Bull Market | 500 |
By 2035, the NMDC Steel share price is projected to be around ₹250 under normal conditions. In adverse markets, the price could fall to ₹100, while favorable conditions might push it up to ₹1500.
| NMDC Steel Share Price Target 2035 | Rupees (₹) |
|---|---|
| Bear Market | 100 |
| Normal Market | 250 |
| Bull Market | 1500 |
Under normal conditions, the NMDC Steel share price might hit ₹500 by 2040. A bearish trend could lower it to ₹200, whereas a bullish surge could raise it to ₹4000.
| NMDC Steel Share Price Target 2040 | Rupees (₹) |
|---|---|
| Bear Market | 200 |
| Normal Market | 500 |
| Bull Market | 4000 |
In 2050, the NMDC Steel share price is expected to be around ₹2000 in a normal situation. In a bear market, it might be ₹600, and in a bull market, it may go up to ₹8000.
| NMDC Steel Share Price Target 2050 | Rupees (₹) |
|---|---|
| Bear Market | 600 |
| Normal Market | 2000 |
| Bull Market | 8000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: Tata Steel Share Price Target 2025 to 2050
