NMDC shares drop over 2% as Citi and Kotak reiterates ‘Sell' ratings
By Aman Shukla Published on June 16, 2025, 09:38 IST
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.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
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Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at BusinessUpturn.com
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