NMDC price hikes take effect from today in Chhattisgarh and Karnataka, Sources to CNBC-TV18

NMDC's management has offered no comment on this development.

In an interaction with CNBC-TV18 on November 21, NMDC CMD Amitava Mukherjee had mentioned that a call on prices will be taken in the next couple of days.

Mukherjee also said that the company's capacity at Kumaraswamy mines is in the final stages of approvals, and that the mines capacity will be enhanced by 2.2 Million Tonnes (MT) within the next 10 days.

NMDC's volumes are likely to be between 51-52 MT in financial year 2025, compared to 47-49 MT in financial year 2024, the CMD said.

For the September quarter, NMDC's volumes increased to 9.57 MT from 8.43 MT during the same period last year. The company's realisations also increased to ₹4,146 per tonne from ₹3,890 per tonne in the year-ago period.

Brokerage firm Citi wrote in its note that they are expecting upside to domestic ore prices and that the company's fines prices have a headroom to rise by ₹1,000 per tonne but the actual rise may be lower.

Citi maintained its buy recommendation on NMDC and raised its price target to ₹190 from ₹160 earlier. It also said that the company is offering a free cashflow yield of 8.5%.

Shares of NMDC have risen 35% so far in 2023.