NMDC STEELNMDC Steel LimitedNSE:NSLNISPTechnicalAnalystSucritNMDC Steel Ltd. (CMP ₹44.27, NSE: NMDS) Prepared by Sucrit Patil | The SmartWay Research Desk | 14 May 2026 A Nagarnar‑based steel producer, incorporated in 2015 after demerger from NMDC Ltd. The company operates a 3.0 MTPA integrated steel plant at Nagarnar, Chhattisgarh, producing hot rolled coils, sheets, and plates. Promoter Holding (Mar 2026): Government of India (President of India) — 60.79% stake (no pledges) FY22–FY26 Snapshot Revenue Growth: Q3 FY26 revenue ₹3,026 Cr vs ₹3,411 Cr in Q2 FY26 (‑11.3% QoQ). → Weak Net Profit: Q3 FY26 PAT ‑₹243.97 Cr vs ‑₹114.78 Cr in Q2 FY26 (loss widened). → Weak Operating Margin: EBIT margin ‑4.48% vs ‑1.59% last quarter. → Weak Equity Capital: Stable, face value ₹10. → Good Dividend Policy: No dividend declared; reinvestment focus. → Neutral/Weak Asset Building: Plant commissioned at ₹24,000 Cr; linkage with Bailadila mines ensures raw material security. → Good Sales: HR coils and plates catering to LPG cylinders, bridges, ships, wagons, and pressure vessels. → Good Expense: Interest expense ~7.7% of revenue; employee cost ~1.1%. → Neutral EPS: TTM EPS ‑₹2.75. → Weak Institutional Interest & Ownership Trends (Mar 2026) Promoter Holding: 60.79% (Government of India) FII Holding: 4.85% DII Holding: 15.23% Retail & Others: 19.12% Strategic Moves & Innovations Focus on hot rolled steel for LPG cylinders, bridges, ships, and wagons. Capability to roll 1650 mm wide HR coils, widest in public sector. Plans to diversify into special steels for generators, transformers, and automobiles. Strong raw material linkage with Bailadila iron ore mines. Cash Flow & Balance Sheet Strength Market cap ~₹13,105 Cr. Book value per share ₹44.75; P/B ~0.94. Debt moderate, backed by government support. Loss‑making but asset‑rich balance sheet. Risk Factors Persistent losses despite revenue growth. Dependence on government policy and subsidies. Exposure to steel price cycles. Competition from private integrated steel players. Investor Takeaway NMDC Steel remains a government‑backed steel producer, with strong promoter holding and raw material security. However, FY26 results show continued losses and margin pressure, making near‑term outlook challenging. At CMP ₹44.27, valuations are asset‑driven (P/B ~0.94) rather than earnings‑driven. Long‑term investors may view NMDC Steel as a policy‑linked turnaround play, but risks remain high until profitability stabilizes.