NMDC reports higher iron ore sales volume in the latest quarter, but Citi cuts its target price for the stock, saying increased costs reduce the impact of the volume improvement. In the quarter, iron ore sales volume stands at 117.30 lakh tonnes, and the company’s iron ore sales aggregate to Rs 6,508 crore.
Citi’s assessment points to cost-related pressures that, according to the brokerage, outweigh the benefits of stronger shipments. Both reports also flag a weaker near-term outlook for iron ore, citing headwinds ahead. While the quarter’s volume performance is described as an offsetting positive development, the brokerage’s stance emphasizes that profitability and margins may remain under pressure if costs stay elevated and market conditions for iron ore remain challenging.
