NMDC share price rallies over 2% ahead of interim dividend announcement; do you own?

Shares of Maharatna PSU firm NMDC (National Mineral Development Corporation) surged as much as 2.23 per cent on the National Stock Exchange (NSE) in Monday's trading session ahead of the interim dividend for the financial year 2024-25 (FY25).

At 9:45 am, NMDC share price was trading at ₹65.34. Despite weak market sentiments, the stock has gained over 3 per cent in a month.

On March 7, the Maharatna PSU company had announced that the board will consider declaring an interim dividend for FY25. “A Meeting of Board of Directors of the Company is scheduled to be held on Monday, 17th March 2025 to consider, inter alia, declaration of Interim Dividend for Financial Year 2024-25,” the company said in an exchange filing.

In accordance with regulatory requirements, NMDC has closed its trading window from March 7 to March 19, 2025. During this period, insiders, including designated persons and their immediate relatives, are prohibited from trading the company's securities prior to the official announcement.

“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 the securities of the Company is closed for all Insiders including Designated Persons and their immediate relatives from 7th March 2025 to 19th March 2025 i.e. 48 hours after the date of the Board Meeting for considering Interim Dividend for the Financial Year 2024-25,” the company added.

NMDC dividend history

This will be the first interim dividend payout by the company for FY25. Earlier in the financial year, the company had announced a 2:1 bonus share issue.

Over the past financial year, NMDC distributed a dividend of ₹7.25 per share, exceeding the ₹6.6 per share from the prior year. Notably, in February 2008, NMDC issued its highest-ever dividend of ₹23.1 per share, a record that remains unbroken.

NMDC shares have slipped over 10.27 per cent in the last six months. On a year-to-date (YTD) basis, the stock has declined nearly 3 per cent.

Should you buy or sell?

Brokerage firm Kotak Institutional Equities has maintained a ‘buy’ rating on NMDC stock while cutting the target price to ₹55 apiece from the earlier target of ₹66.

The brokerage highlighted that NMDC faces significant challenges both domestically and internationally. Globally, an oversupply in the seaborne iron ore market is exerting downward pressure on prices. Domestically, increased supply from merchant iron ore mines in India is intensifying competition for NMDC's Chhattisgarh operations.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.