Following two mining stocks, fundamentally very strong, undervalued,
have huge cash reserves, zero debt and missed the just started great bull run
driven by nationalist government at the center. Over a period of time these
companies also diversified themselves into various businesses apart from just
mining iron ore or manganese.
NMDC (CMP:143 TP:
250 Duration: 2-3 Years)
GMDC (CMP:123 TP: 230
Duration: 2-3 Years)
|
NMDC
|
GMDC
|
Promoter Stake (%)
|
80
|
74
|
FII Stake (%)
|
6.77
|
6.11
|
DII Stake (%)
|
10.61
|
12.40
|
Retail (%)
|
2.62
|
7.4
|
Debt (INR)
|
0
|
0
|
Life Time High
|
571.80
|
317
|
Cash Reserve (Cr)
|
30,000
|
28,00
|
Equity (Cr)
|
396.47
|
31.8
|
Cash Reserve/Share (INR)
|
76
|
88
|
Reason for the under-performance was due to the major
correction happened to the minerals/commodities across the globe. Most of the
commodities already corrected to 2008/2009 levels, chances of further major
correction seems to be very low. Since world seen very low GDP in last 6 years,
things will only improve from here on-wards and consumption theme will pick for
sure. It might take some time, but trend from India point of view seems to be
becoming ultra strong due to strong consumption base and business friendly
government at the center.
