NMDC

Future prospects of NMDC and KESORAM Inds??

 

NMDC is a value trap. Company needs cash for its steel business. Govt as owner, wants cash to be given out as dividend & efficient borrowing from markets (debt) for business. Will the profits be enough to sustain such dividends in the current economic condition? Just to match last year's payout, it'll have to dip into cash reserve!

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H1 FY16 sales & profits are down ~ 51%



Kesoram is worth a bet and I'll buy.


PS - if you check similar threads at the bottom of the page, there's "NMDC is the safe investment" & I remember NMDC is recommended for retired people.

Your money, your call!