Also, it was as if the the market wasn’t valuing the steel plant pre-merger. So when the prices corrected, post merger, the margin of safety just increased for post merger NMDC. Hope the steel plant is profitable but not sure it will be as profitable as NMDC w.r.t profit margin. Let’s be conservative and say that we will receive a dividend of Rs 5 this year, the dividend yield will still be roughly 5% which is alright. I guess NMDC might not become a multi bagger like some of the other growth companies but I think of it as better than bond investing.
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