Please find below my writeup on the NMDC Steel Limited. Views invited :
This would be my First Topic and after going through the NMDC thread , I realised the need of opening a new thread for this ! Please be supportive and share your insights so that we can get more depth in this.
I was not able to find much on the net and would have to wait for the future reports of the company , so I tried to dig into the reports to get a fresh view . I have highlighted some pointers below :
Pointers from Fitch Rating :
Note : The new entity will have a leveraged balance sheet, with the net leverage ((debt-cash)/EBITDA) of over 4.0x in the initial years, considering the issued and proposed NCD programme /bank debt of INR50 billion and the capacity utilisation of 50%-75%. However, the debt will be lower than that of other similar-sized steel plants.
Some pointer’s to keep in mind for future (As we will have to keep these pointer’s in mind while tracking the business and when the story evolves ):
Thesis Pointers : 
Anti-thesis Pointers : 
Valuation Check
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I got this from the latest presentation by @Rakesh_Arora who I look upto in the steel segment !
( Would really encourage for your further view’s on this topic
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Another Valuation Metric by Systematix Report :
Also I found this snippet from Jindal Steel & Power Q3FY23 concall – Jindal on the lookout for inorganic growth
Hence, it seems like NMDC is going to take care of it’s child NSL which is a major positive I feel . But as mentioned above we will have to see how quickly the management get’s adapted to the new plant and it’s in & out working .
Thanks a lot for the read , hope I was able to add some value to this forum and my fellow investors?
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