NMDC Steel Limited (NSLNISP) AI Stock Analysis

NMDC Steel Limited

(NSE:NSLNISP)

Select Model

Rating:59Neutral

Price Target:INR 39.00▲(3.50% Upside)

Action:reiterated

Date:08/29/26

The overall score of 59 reflects a company in transition with improving operational momentum but facing significant headwinds. The primary strength is the bullish technical trend and solid financial recovery, evidenced by revenue growth and positive cash flows. However, the score is heavily constrained by an extremely high P/E ratio of 169x, which prices in perfection and leaves no margin for error given the current thin profitability. The lack of dividends further weakens the valuation case. The company's moderate leverage and improving margins provide a foundation, but sustainable earnings growth is critical to justify the current market price.

Positive Factors

Operational turnaroundThe return to operating profitability alongside double-digit revenue growth indicates improving plant economics and market execution. If sustained, stronger gross and EBITDA margins can support reinvestment, improve resilience through steel cycles, and establish a more durable earnings base.

Negative Factors

Thin net profitabilityThe narrow net margin shows that the recent operating improvement has not yet translated into substantial bottom-line returns. Prior losses indicate limited earnings consistency, so modest changes in steel prices, costs, or utilization could materially weaken profitability over the next several quarters.

NMDC Steel Limited (NSLNISP) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 110.37B
Dividend Yield: ―
Average Volume (3M): 548.93K
Price to Earnings (P/E): 129.9
Beta (1Y): 1.59
Revenue Growth: 41.57%
EPS Growth: ―
Country: India
Employees: 1,045
Sector: General
Sector Strength: 55
Industry: Steel

NMDC Steel Limited Business Overview & Revenue Model

Company Description

NMDC Steel Limited manufactures and sells steel products in India. It offers hot rolled coils, sheets, and plates of welded steel pipe for pipeline transportation systems; structural and silicon steel; pig iron; and LPG grades of LPG cylinders manufa...

How the Company Makes Money

NMDC Steel Limited makes money primarily by selling steel and steel-related products produced at its integrated steel plant. Its revenue model is largely product-sales driven: (1) Sale of finished steel products: The core revenue stream is realized b...

NMDC Steel Limited Financial Statement Overview

Summary

Financial performance is improving with strong revenue growth (+16.5%) and a significant gross margin expansion to 26.2%. The company returned to profitability, and the balance sheet is stable with moderate leverage (D/E 0.35). Healthy free cash flow (INR 11.1B) supports operations. However, the net profit margin is razor-thin at 0.4%, and return on equity is very low, indicating profitability remains a key challenge.

Income Statement

50Neutral

Balance Sheet

75Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2021
Income Statement
Total Revenue	139.38B	136.42B	85.03B	30.49B	0	0
Gross Profit	36.34B	35.71B	9.66B	-12.77B	0	0
EBITDA	15.57B	16.04B	-17.17B	-13.18B	0	2,371
Net Income	836.70M	587.20M	-23.74B	-15.60B	0	-72.32K
Balance Sheet
Total Assets	0	282.37B	284.70B	293.68B	255.68B	39.02K
Cash, Cash Equivalents and Short-Term Investments	8.00B	8.00B	9.62B	1.82B	6.55B	39.02K
Total Debt	0	46.13B	59.09B	66.62B	38.42B	0
Total Liabilities	-131.73B	150.64B	153.55B	138.80B	85.20B	30.85K
Stockholders Equity	131.73B	131.73B	131.14B	154.88B	170.49B	8,165
Cash Flow
Free Cash Flow	6.91B	11.10B	15.38B	-33.17B	-6.39B	-78.76K
Operating Cash Flow	8.21B	13.81B	19.66B	-27.33B	15.16B	-78.76K
Investing Cash Flow	1.26B	364.60M	-5.06B	-6.90B	-22.07B	1,917
Financing Cash Flow	-9.31B	-14.16B	-14.60B	28.08B	12.93B	0

NMDC Steel Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price37.68

Price Trends

50DMA41.68Negative

100DMA42.89Negative

200DMA42.11Negative

Market Momentum

MACD-0.94Positive

RSI34.74Neutral

STOCH41.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NSLNISP, the sentiment is Negative. The current price of 37.68 is below the 20-day moving average (MA) of 39.53, below the 50-day MA of 41.68, and below the 200-day MA of 42.11, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 34.74 is Neutral, neither overbought nor oversold. The STOCH value of 41.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NSLNISP.

NMDC Steel Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NSLNISP against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:JSL	68Neutral	INR 555.86B	16.65	―	0.44%	11.65%	20.53%
IN:SAIL	66Neutral	INR 659.64B	11.86	―	1.47%	9.39%	119.23%
IN:JSWSTEEL	61Neutral	INR 3.04T	10.69	―	0.57%	14.05%	371.72%
IN:TATASTEEL	59Neutral	INR 2.09T	18.92	―	2.39%	10.51%	143.13%
IN:NSLNISP	59Neutral	INR 110.43B	129.86	―	―	41.57%	―
IN:JINDALSTEL	56Neutral	INR 1.08T	37.83	―	0.19%	25.54%	3.72%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:NSLNISP and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NSLNISP	NMDC Steel Limited	37.68	-7.86	-17.26%
IN:JINDALSTEL	Jindal Steel Limited	1055.40	-18.57	-1.73%
IN:JSL	Jindal Stainless Limited	674.25	-72.54	-9.71%
IN:JSWSTEEL	JSW Steel Limited	1245.00	57.52	4.84%
IN:SAIL	Steel Authority of India Limited	159.70	23.47	17.23%
IN:TATASTEEL	Tata Steel Limited	167.70	-11.26	-6.29%

NMDC Steel Limited Corporate Events

NMDC Steel Denies Undisclosed Triggers Behind Surge in Share Volume

Aug 28, 2026

NMDC Steel Limited has clarified a recent surge in trading volumes in its shares following a query from the exchanges. The company stated it promptly discloses all material price-sensitive information in line with securities regulations and has no un...

NMDC Steel Clears June Quarter Results After Clean Auditor Review

Aug 14, 2026

NMDC Steel Limited’s board has approved the unaudited integrated financial results for the quarter ended June 30, 2026, following a meeting held on August 14, 2026. The figures have been prepared in line with Indian Accounting Standard 34 and S...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 29, 2026

NMDC Steel Limited AI Stock Analysis