NMDC Limited's intrinsic value using Intellectual Capital analysis

NMDC Limited

BSE : 526371

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NSE : NMDC

Industry : Mining/Minerals

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ISIN : INE584A01023

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FreeFloat : 20.00%

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FnO : Yes

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LotSize : 6000

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Intellectual Capital (IC)	28,319.09
Net Worth (NW)	27,866.71
Intrinsic Worth (IW)	56,185.80
Market Cap (MC)	39,467.24
Economic Value Added	331.56

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	50.40%
IC Gross Margin (EBITDA/IC)	26.82%
IC Net Margin (NPT/IC)	18.48%
Knowledge Turnover (Sales/IC)	0.43
Market to Intrinsic Value (MC/IW)	0.70

As Of	Intrinsic Value	Market Price
31 Dec 2019	Rs. 183.50	Rs. 128.90
18 Feb 2020	-	Rs. 99.35

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 110.63	Sell	Avoid
KB > 50% : Yes		50 DMA : Rs. 120.89
0 < M2IV < 1 : Yes		Vol-Price trend : Falling

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Mar-17
S
2871.98
3006.25
1267.71
1237.04
1231.19
511.88
464.46

Jun-17
S
2841.54
2970.13
1623.50
1576.81
1568.66
969.26
952.43

Sep-17
S
2421.33
2531.18
1312.86
1250.90
1240.73
844.30
827.54

Dec-17
S
2469.03
2580.17
1465.94
1388.77
1377.59
886.53
869.76

Mar-18
S
3883.01
4053.16
2070.50
2000.28
1992.68
1105.85
1203.39

Jun-18
S
2421.99
2547.13
1549.04
1487.46
1476.65
975.27
987.29

Sep-18
S
2437.92
2568.87
1390.36
1322.84
1313.19
636.49
648.38

Dec-18
S
3649.44
3785.57
2290.49
2221.09
2211.47
1576.77
1588.71

Mar-19
S
3643.32
3839.40
2288.38
2207.99
2197.75
1453.94
1417.60

Jun-19
S
3263.74
3386.56
1989.66
1924.89
1913.16
1179.42
1179.72

Sep-19
S
2241.76
2369.30
1187.73
1090.17
1080.45
703.38
703.72

Dec-19
S
3006.38
3136.56
1721.60
1657.02
1647.26
1376.57
1377.00

* C - Consolidated, S - Standalone