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Shares of NMDC Ltd, India’s biggest iron ore producer, today fell 1.3 per cent as Motilal Oswal Securities has downgraded the stock to “sell’’ from “buy’’ and cut the price target to Rs 104 from Rs 161.
It says that NMDC’s pricing is still non-competitive, despite steep price cuts.
Motilal Oswal has cut the EBITDA estimates by 36 per cent and 42 per cent for FY16 and FY17, respectively.
Steep correction in iron ore prices and rising capital commitment to the steel project will squeeze the dividend payout, it says.
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