Shares of the Maharatna PSU giant NMDC (National Mineral Development Corporation) experienced a notable rise of 2.23% during Monday’s trading session on the National Stock Exchange (NSE). This uptick comes as anticipation builds around the company’s impending interim dividend for the 2024-25 financial year (FY25). By 9:45 AM, NMDC’s share price reached ₹65.34, showcasing a resilient performance despite prevailing weak market sentiments, with more than 3% gains in the past month.

Upcoming Dividend Announcement

On March 7, NMDC revealed that its board will convene on March 17, 2025, to deliberate on the declaration of the interim dividend for FY25. In their official exchange filing, the company stated, “A Meeting of the Board of Directors is scheduled to consider, among other matters, the declaration of the Interim Dividend for the Financial Year 2024-25.”

• Key Dates:
  • Trading Window Closure: March 7 to March 19, 2025
  • Board Meeting Date: March 17, 2025

Insider Trading Regulations

To comply with legal regulations, NMDC has imposed a trading window closure from March 7 to March 19, 2025. During this period, all insiders, including designated personnel and their immediate families, are restricted from trading the company’s securities until the official dividend announcement is made. The company stated, “In accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window is closed for all insiders from March 7 to March 19, 2025.”

NMDC’s Dividend History

This forthcoming interim dividend will mark the first payout for FY25. Earlier this financial year, NMDC made headlines with a 2:1 bonus share issue. In the previous fiscal year, NMDC distributed ₹7.25 per share, an increase from ₹6.6 per share the year before. Notably, NMDC holds the record for its highest dividend payout of ₹23.1 per share, which was issued in February 2008.

Despite its recent successes, NMDC shares have seen a decline of over 10.27% in the last six months, and year-to-date, the stock has dropped nearly 3%.

Analyst Insights: Buy or Sell?

Brokerage firm Kotak Institutional Equities has retained a ‘buy’ rating for NMDC stock but has revised the target price down to ₹55, down from ₹66. The firm emphasized the significant hurdles NMDC faces, both domestically and globally. An oversupply in the international seaborne iron ore market is putting downward pressure on prices, while increased competition from domestic merchant iron ore mines is challenging NMDC’s operations in Chhattisgarh.

This dynamic situation in the iron ore sector makes NMDC a stock to watch closely, as investors weigh the potential for returns against the backdrop of market challenges.