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NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014


Last Close

Avg Daily Vol

52-Week High

Trailing PE

Annual Div

ROE

LTG Forecast

1-Mo Return

138.15 (INR)

3.1M

196.00

8.5

8.50

21.8%

9.2%

-16.7%

December 3, 2014
INDIA NATIONAL Exchange

Market Cap

52-Week Low

Forward PE

Dividend Yield

Annual Rev

Inst Own

3-Mo Return

554.9B

123.10

7.7

6.2%

132.9B

12.3%

-22.8%

AVERAGE SCORE
Score Averages

NEUTRAL OUTLOOK: NMDC's current score is


relatively in-line with the market.

Metals & Mining Group: 4.5


Mineral Resources Sector: 4.9

Average Score Trend (4-Week Moving Avg)

Peers

-6M

-3M

-1M

-1W

10

SSLT

10

TATASTEEL

10

SAIL

NMDC

JSWSTEEL

Positive
Neutral
Negative
NOV-2011

NOV-2012

NOV-2013

NOV-2014

HIGHLIGHTS

Large Market Cap: 7.7


BSE SENSEX Index: 8.2
Current

1Y Trend

THOMSON REUTERS I/B/E/S MEAN

- The score for NMDC LIMITED last changed from 6 to 7 on


11/02/14 and has remained the same for 5 weeks.
- The recent change in the Average Score was primarily due to
an improvement in the Earnings and Relative Valuation
component scores.

Buy

Mean recommendation from all analysts covering


the company on a standardized 5-point scale.

35 Analysts

Sell

Reduce

Hold

Buy

Strong
Buy

PRICE AND VOLUME CHARTS


1-Year Return: 0.7%

5-Year Return: -66.9%

BUSINESS SUMMARY
NMDC Limited is an iron ore producer. The Company is engaged in the exploration of range of minerals, including iron ore, copper, rock phosphate,
lime stone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite and beach sands. The Company is also investing in development
of renewable energy resources. The Company's subsidiaries include J&KMDC Limited, NMDC-CMDC Limited, NMDC SARL, NMDC Power Limited,
Legacy Iron Ore Ltd and Jharkhand National Mineral Development Corporation Limited.

Page 1 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

INDICATOR COMPONENTS
The AVERAGE SCORE combines the quantitative analysis of five widely-used investment decision making tools: Earnings,
Fundamental, Relative Valuation, Risk, and Price Momentum. A simple average of the underlying component ratings is normally
distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differently using
alternative methodologies and the importance of individual factors varies across industries, market capitalization and investment styles.
Additional criteria should always be used to evaluate a stock.
Earnings

Fundamental

Relative Valuation

Risk

Price Momentum

PEER ANALYSIS

Currency in INR
PRICE MOMENTUM

Average
Score Ticker

VALUATION

Price
(12/03/14)

1-Mo
Return

3-Mo
Return

1-Yr
Return

FUNDAMENTAL

Market
Cap

Trailing
PE

Forward
PE

Dividend
Yield

ANALYSTS

Net
Margin

LTG I/B/E/S
Forecast Mean

# of
Analysts

SSLT

230.85

-12.0%

-17.6%

27.3%

685.9B

9.0

10.2

1.5%

2.2%

6.5% Hold

32

NMDC

138.15

-16.7%

-22.8%

0.7%

554.9B

8.5

7.7

6.2%

50.5%

9.2% Buy

35

TATASTEEL

463.75

-5.2%

-11.8%

13.2%

459.7B

15.3

8.8

2.2%

3.5%

20.6% Buy

44

SAIL

85.65

-1.2%

-0.7%

24.5%

367.8B

14.0

12.9

2.4%

4.6%

16.3% Reduce

41

JSWSTEEL

1,170.35

-6.6%

-9.6%

25.4%

290.3B

18.4

10.6

0.9%

5.4%

39.7% Buy

39

BHARATFORG

1,002.30

23.6%

19.2%

232.2%

224.6B

46.1

34.4

0.5%

7.1%

36.5% Buy

32

JINDALSTEL

153.70

-9.7%

-35.5%

-44.2%

128.7B

7.2

6.2

1.0%

8.6%

19.9% Hold

26

JINDALSAW

109.90

40.5%

41.1%

129.7%

30.7B

--

12.6

0.9%

2.7%

15.0% Buy

RATNAMANI

579.95

24.2%

38.5%

346.8%

27.5B

18.9

14.0

0.8%

11.0%

-- Buy

BHUSANSTL

101.30

-5.1%

5.4%

-78.9%

22.0B

47.9

10.3

0.5%

--

-- Reduce

MAHSEAMLES

273.15

-15.9%

-20.5%

52.1%

19.7B

19.4

14.1

2.2%

--

-- Buy

Average

391.73

1.5%

-1.3%

66.2%

255.6B

20.5

12.9

1.7%

10.6%

20.5% Buy

23.8

7.1

PEER COMPANIES
SSLT
TATASTEEL
SAIL
JSWSTEEL
BHARATFORG

SESA STERLITE LIMITED


TATA STEEL LIMITED
STEEL AUTHORITY OF INDIA
JSW STEEL LIMITED
BHARAT FORGE LIMITED

JINDALSTEL
JINDALSAW
RATNAMANI
BHUSANSTL
MAHSEAMLES

JINDAL STEEL & POWER


JINDAL SAW LIMITED
RATNAMANI METALS & TUBES
BHUSHAN STEEL LIMITED
MAHARASHTRA SEAMLESS LTD

Page 2 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

EARNINGS

Currency in INR
Earnings Score Averages

NEUTRAL OUTLOOK: Mixed earnings


expectations and performance.

Metals & Mining Group: 5.7


Mineral Resources Sector: 5.9

Earnings Score Trend (4-Week Moving Avg)

Peers

-6M

-3M

-1M

-1W

10

10

10

SSLT

NMDC

10

SAIL

TATASTEEL

JSWSTEEL

Positive
Neutral
Negative
NOV-2011

NOV-2012

NOV-2013

NOV-2014

Large Market Cap: 6.5


BSE SENSEX Index: 6.9
Current

1Y Trend

EARNINGS INDICATORS
Earnings Surprises

Estimate Revisions

Recommendation Changes

(33.3% weight)

(33.3% weight)

(33.3% weight)

JSWSTEEL
TATASTEE

SSLT

JSWSTEEL
NMDC
SAIL
SSLT
TATASTEE

NMDC
JSWSTEEL

SAIL
SSLT

SAIL
TATASTEE

NMDC

Last 4 Quarters
# Positive Surprises (> 2%)
# Negative Surprises (< -2%)
# In-Line (within 2%)
Avg Surprise

Last 4 Weeks
2
1
1
0.7%

# Up Revisions
# Down Revisions
Avg Up Revisions
Avg Down Revisions

HIGHLIGHTS

Last 120 Days


0
0
---

# Broker Upgrades
# Broker Downgrades

4
7

PRICE TARGET

- NMDC currently has a relatively neutral Earnings Rating of 6. The


average Earnings Rating for its Iron & Steel Industry is 5.3 and the
S&P CNX NIFTY average is 7.0.
- Over the past 4 quarters, the company has reported 2 positive (>2%),
1 negative (<-2%), and 1 in-line (within 2%) surprises. The average
surprise for this time period has been 0.7%. Most recently on
10/31/14, the company reported quarterly earnings of 4.23 per share, a
positive surprise of 3.2% above the consensus of 4.10.
- There have been 4 upward and 7 downward broker recommendation
changes for NMDC LIMITED over the past 120 days.

The chart indicates where analysts predict the stock price will be within
the next 12 months, as compared to the current price.
240
210
MEAN

180
138.15

150
120
90.00

12-Month Price Target

HIGH

LOW

Current Price

Page 3 of 11
2014 Thomson Reuters. All rights reserved.

Price Target

Mean

182.00

High

235.00

Low

111.00

Target vs. Current

31.7%

# of Analysts

34

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

EARNINGS PER SHARE


Actuals

Estimates

8.000

Earnings per share (EPS) is calculated


by dividing a company's earnings by the
number of shares outstanding. Analysts
tend to interpret a pattern of increasing
earnings as a sign of strength and flat
or falling earnings as a sign of
weakness.

7.000

Quarterly

NA

NA

6.000

Mean

--

--

High

--

--

Low

--

--

# of Analysts

--

--

4.830

5.000

4.230

3.950

4.000
3.000

The charts provide a comparison


between a company's actual and
estimated EPS, including the high and
low forecasts.

3.330

09-13

12-13

03-14

Actuals

09-14

NA

NA

Estimates

24.00

Annual

22.00
HIGH

20.00
18.00

MEAN
16.00

15.95

18.060

High

19.200

20.910

Low

16.120

14.440

24

23

LOW

2013

2014

2015

MEAN ESTIMATE TREND

Current
30 Days Ago
90 Days Ago
% Change (90 Days)

2016

17.740

# of Analysts

16.00
14.00

2015

Mean

2016

ANALYST RECOMMENDATIONS

Q
--

Q
--

Y
2015

Y
2016

Price
Target

-----

-17.740
18.060
181.00
-17.810
18.300
187.00
-17.660
18.480
190.00
-0.5%
-2.3%
-4.7%
Next Expected Report Date: 02/11/15

Thomson Reuters I/B/E/S Mean: Buy (35 Analysts)

Strong Buy

10

Buy

11

Hold

Reduce

Sell

EARNINGS SURPRISES
Comparing a company's actual earnings to the mean expectation of
analysts results in a difference referred to as a 'positive' or 'negative'
surprise. Research has shown that when a company reports a
surprise, it is often followed by more of the same surprise type.
Surprise Summary (Last 12 Quarters)
Surprise Type
Positive Quarters (> 2%)
Negative Quarters (< -2%)
In-Line Quarters (within 2%)

Amount

Percent

5
6
1

41.7%
50.0%
8.3%

Surprise Detail (Last 6 Periods)


Surprise
Type

Announce
Date

Period End
Date

Actual
EPS

Mean
EPS

Surprise
(%)

POSITIVE
IN-LINE
NEGATIVE
POSITIVE
POSITIVE
NEGATIVE

10/31/14
05/30/14
02/10/14
10/24/13
08/07/13
05/29/13

09/30/14
03/31/14
12/31/13
09/30/13
06/30/13
03/31/13

4.230
4.830
3.950
3.330
3.970
3.690

4.100
4.750
4.116
3.264
3.510
4.260

3.2%
1.7%
-4.0%
2.0%
13.1%
-13.4%

ANNUAL REVENUE
A pattern of increasing sales in
conjunction with a rising EPS may
influence a buy recommendation, while
flat or falling sales and faltering
earnings may explain a sell
recommendation. A rising EPS with flat
or falling sales may result from
increased cost efficiency and margins,
rather than market expansion. This
chart shows the sales forecast trend of
all analysts and the highest and lowest
projections for the current and next
fiscal year.

Actuals

Estimates

200B

2015

2016

Mean

135.1B

141.8B

HIGH

High

141.4B

157.8B

MEAN

Low

127.3B

104.2B

12.1%

17.7%

22

22

180B
160B
140B
120.5B

120B
100B

112.6B

Forecasted Growth

107.0B

# of Analysts
LOW

2012

2013

2014

2015

2016

Page 4 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

FUNDAMENTAL
Fundamental Score Averages

POSITIVE OUTLOOK: Strong fundamentals


such as high profit margins, low debt levels, or
growing dividends.

Metals & Mining Group: 4.7


Mineral Resources Sector: 4.9

Fundamental Score Trend


Positive
Neutral
Negative
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2012
2013
2014

Large Market Cap: 7.9


BSE SENSEX Index: 8.2

Peers

Q4
2013

Q1
2014

Q2
2014

Q3
2014

SSLT

10

TATASTEEL

NMDC

10

JSWSTEEL

SAIL

Current

3Y Trend

FUNDAMENTAL INDICATORS
Profitability

Debt

Earnings Quality

Dividend

(25% weight)

(25% weight)

(25% weight)

(25% weight)

JSWST
NMDC
SAIL
SSLT
TATAST

Revenue Growth
For year over year
ending 09/14
Gross Margin
For trailing 4 qtrs
ending 09/14
Return on Equity
For trailing 4 qtrs
ending 09/14
Net Margin
For trailing 4 qtrs
ending 09/14

25.3% Current Ratio


For year over year
ending 09/14
63.3% Debt-to-Capital
For trailing 4 qtrs
ending 03/14
21.8% Interest Funding
For trailing 4 qtrs
ending 03/14
50.5% Interest Coverage
For trailing 4 qtrs
ending 03/14

NMDC

SSLT
JSWST
TATAST

TATAST
SSLT

SAIL
SSLT
JSWST
TATAST

SAIL

SAIL
JSWST

NMDC

NMDC

17.8

Days Sales in Inv.


For period ending
03/13
0.0% Days Sales in Rec.
For period ending
03/13
0.0%

1621.4

67.7

81.2

Div. Growth Rate


For year over year
ending 06/14
Dividend Funding
For trailing 4 qtrs
ending 03/14
Dividend Coverage
For trailing 4 qtrs
ending 03/14
Current Div. Yield
For trailing 4 qtrs
ending 12/14

6.3%

58.8%

1.3

6.2%

HIGHLIGHTS
- NMDC's Fundamental Rating declined significantly over the last
quarter from 10 to 8. However, the current rating is still considerably
more bullish than the Metals & Mining Industry Group average of 4.7.
- Of the 225 firms within the Metals & Mining Industry Group, NMDC
LIMITED is among the 77 companies that pay a dividend. The stock's
dividend yield is currently 6.2%.
- The company's gross margin has been higher than its Industry Group
average for each of the past five years.

- Of the 148 firms within the Metals & Mining Industry Group that have
reported debt-to-capital, NMDC is among the 86 firm(s) whose
balance sheet is free of long-term debt.
- The company's days sales in inventory has been lower than its
Industry Group average for each of the past five years.

Page 5 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

RELATIVE VALUATION
Relative Valuation Score Averages

NEUTRAL OUTLOOK: Multiples relatively in-line


with the market.

Metals & Mining Group: 7.4


Mineral Resources Sector: 6.3

Relative Valuation Score Trend (4-Week Moving Avg)

Peers

Positive
Neutral
Negative
NOV-2011

NOV-2012

NOV-2013

NOV-2014

Large Market Cap: 4.0


BSE SENSEX Index: 4.9

-6M

-3M

-1M

-1W

TATASTEEL

10

10

Current
10

JSWSTEEL

SAIL

SSLT

NMDC

1Y Trend

RELATIVE VALUATION INDICATORS


Price to Sales

Trailing PE

Forward PE

(50% weight)

(25% weight)

(25% weight)

JSWSTEEL
TATASTEE
SAIL
SSLT

NMDC
SSLT
TATASTEE

NMDC
TATASTEE
JSWSTEEL

NMDC

JSWSTEEL
SAIL

SAIL
SSLT

Price to Sales

4.1 Trailing PE

5-Yr Average

9.4 5-Yr Average

Rel. to 5-Yr Avg.


BSE SENSEX Index
Rel. To BSE SENSEX

8.5 Forward PE
16.6

56% Discount Rel. to 5-Yr Avg.

5-Yr Average

49% Discount Rel. to 5-Yr Avg.

3.2 BSE SENSEX Index

24.8

27% Premium Rel. To BSE SENSEX

BSE SENSEX Index

66% Discount Rel. To BSE SENSEX

7.7
13.1
41% Discount
19.8
61% Discount

HIGHLIGHTS
- The company's Price to Sales, Trailing P/E, and Forward P/E multiples
are all currently at or near their 5-year lows.
- NMDC's current Trailing P/E of 8.5 represents a 55% Discount to its
Metals & Mining Group average.
- NMDC currently has a Valuation Rating of 7 which is significantly
above the S&P BSE SENSEX index average rating of 4.9.

- Based on Price to Sales, NMDC currently trades at a >100% Premium


to its Metals & Mining Group peers. On average, the company has
traded at a >100% Premium over the past five years.
- Based on Forward P/E, NMDC currently trades at a 44% Discount to
its Metals & Mining Group peers. On average, the company has
traded at a 15% Premium over the past five years.

Page 6 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

PRICE TO SALES

TRAILING PE

The most recent week's close price divided by the revenue per share.
Price to Sales:
5-Year Average:
BSE SENSEX Index Average:
Metals & Mining Group Average:
33
30
27
24
21
18
15
12
9
6
3

4.1
9.4
3.2
1.2

Trailing PE:
5-Year Average:
BSE SENSEX Index Average:
Metals & Mining Group Average:
50
45
40
35
30
25
20
15
10
5
0

5-Yr Average

2010

2011

2012

2013

2014

FORWARD PE

Forward PE:
5-Year Average:
BSE SENSEX Index Average:
Metals & Mining Group Average:

5-Yr Average

2010

2011

2012

2013

2014

The Forward P/E divided by the five-year forecasted growth rate.


7.7
13.1
19.8
13.7

Forward PEG:
5-Year Average:
BSE SENSEX Index Average:
Metals & Mining Group Average:
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

5-Yr Average

2010

8.5
16.6
24.8
18.7

FORWARD PEG

The most recent week's close price divided by the sum of the four
upcoming quarterly consensus estimates.

>50
45
40
35
30
25
20
15
10
5
0

The most recent week's close price divided by the sum of the four most
recently reported quarterly earnings.

2011

2012

2013

2014

0.8
0.8
1.7
1.1

5-Yr Average

2010

Page 7 of 11
2014 Thomson Reuters. All rights reserved.

2011

2012

2013

2014

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

RISK
Risk Score Averages

POSITIVE OUTLOOK: Consistent return patterns


(low volatility).

Metals & Mining Group: 5.0


Mineral Resources Sector: 5.4

Risk Score Trend (4-Week Moving Avg)


Positive
Neutral
Negative
NOV-2011

NOV-2012

NOV-2013

NOV-2014

Peers

Large Market Cap: 9.5


BSE SENSEX Index: 9.6

-6M

-3M

-1M

-1W

JSWSTEEL

10

10

10

10

Current
10

TATASTEEL

10

10

10

10

NMDC

10

SAIL

SSLT

1Y Trend

RISK INDICATORS
Magnitude Of Returns

Volatility

Beta (1-year)

Correlation

(25% weight)

(25% weight)

(25% weight)

(25% weight)

TATAST
JSWST
NMDC
SAIL
SSLT

NMDC
TATAST
JSWST
SAIL
SSLT

JSWST
SAIL
SSLT
TATAST
NMDC

JSWST

NMDC
TATAST
SAIL
SSLT

Daily Returns (Last 90 Days)


Best
5.3%
Worst
-5.5%
Monthly Returns (Last 60 Months)
Best
36.7%
Worst
-31.9%

Standard Deviation
Last 90 Days
2.14
Last 60 Months
10.58
Intra-Day Swing (Last 90 Days)
Last 90 Days Avg
3.2%
Last 90 Days Largest
8.8%

HIGHLIGHTS

Beta vs. BSE SENSEX


Positive Days Only
Negative Days Only
Beta vs. Group
Positive Days Only
Negative Days Only

0.96
0.71
1.84
0.00
0.00
1.51

Correlation vs. BSE SENSEX


Last 90 Days
38%
Last 60 Months
37%
Correlation vs. Group
Last 90 Days
28%
Last 60 Months
44%

RISK ANALYSIS

- NMDC currently has a Risk Rating of 9 while the S&P BSE


SENSEX index has an average rating of 9.6.
- On days when the market is up, NMDC tends to underperform
versus the S&P BSE SENSEX index. Also, on days when the
market is down, the shares generally decrease more than the
S&P BSE SENSEX index.
- In both short-term and long-term periods, NMDC has shown
average correlation (>0.2 and <0.4) with the S&P BSE
SENSEX index. Thus, this stock would provide only average
levels of diversification to a portfolio similar to the broader
market.
- Over the last 90 days, NMDC's Standard Deviation has been
2.1 while that of the S&P BSE SENSEX index has been 0.7.

Peers

Best
Daily
Return

Last 90 Days
Worst
#
# Largest
Daily Days Days Intra-Day
Return
Up Down
Swing

Last 60 Months
Best
Worst
Monthly Monthly
Return
Return

NMDC

5.3%

-5.5%

22

36

8.8%

36.7%

-31.9%

JSWSTEEL

3.5%

-5.8%

31

26

9.1%

37.9%

-23.0%

SAIL

7.5%

-4.2%

25

33

9.4%

29.7%

-28.5%

SSLT

4.6%

-4.6%

25

32

14.2%

52.5%

-19.5%

TATASTEEL

4.5%

-4.2%

29

29

7.2%

34.4%

-21.2%

BSE SENSEX

1.9%

-1.6%

32

27

2.3%

11.7%

-10.6%

Page 8 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

PRICE MOMENTUM

Currency in INR
Price Momentum Score Averages

NEGATIVE OUTLOOK: Weak recent relative


price performance or entering historically poor
seasonal period.

Metals & Mining Group: 4.4


Mineral Resources Sector: 4.8

Price Momentum Score Trend (4-Week Moving Avg)

Peers

Positive
Neutral
Negative
NOV-2011

NOV-2012

NOV-2013

NOV-2014

Large Market Cap: 7.4


BSE SENSEX Index: 7.3

-6M

-3M

-1M

-1W

SAIL

Current
7

JSWSTEEL

TATASTEEL

SSLT

NMDC

1Y Trend

PRICE MOMENTUM INDICATORS


Relative Strength

Seasonality

(70% weight)

(30% weight)

SSLT
NMDC
SAIL
TATASTEE
JSWSTEEL

SAIL
JSWSTEEL
TATASTEE

SSLT
NMDC

Relative Strength Indicator (scale 1-100, 100 is best)


NMDC
Industry Avg
Last 1 Month
32
50
Last 3 Months
42
52
Last 6 Months
47
52

Average Monthly Return (Last 10 Years)


DEC
JAN
FEB
Company Avg
6.1%
-0.3%
-5.8%
Industry Avg
8.1%
-1.7%
-3.1%
Industry Rank
25 of 81
56 of 82
43 of 86

PRICE PERFORMANCE
Daily close prices are used to calculate the
performance of the stock as compared to a
relevant index over five time periods.

3-Month

YTD

1-Year

CNX NIFTY

-1.9%

1-Week

1-Month

NMDC

0.7%
-16.7%
2.6%
-22.8%
5.2%
-2.6%
35.4%

NMDC

CNX NIFTY

Close Price (12/03/14)

138.15

8538

52-Week High

196.00

8588

52-Week Low

123.10

6001

- On 12/03/14, NMDC closed at 138.15, 29.5% below its 52week high and 12.2% above its 52-week low.
- NMDC shares are currently trading 11.8% below their 50-day
moving average of 156.57, and 14.5% below their 200-day
moving average of 161.56.
- The S&P CNX NIFTY is currently 0.6% below its 52-week high
and 42.3% above its 52-week low.

0.7%
37.7%

Page 9 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014

DETAILED STOCK REPORT TIPS


The Thomson Reuters Stock Report is a comprehensive, company-specific analysis
that includes a proprietary Stock Rating along with underlying component indicators
and supportive data elements. The report is updated daily, although some of the
data elements and the ratings are updated weekly.
Average Score
The Average Score combines a quantitative analysis of five widely-used investment
decision making tools - Earnings, Fundamental, Relative Valuation, Risk, and Price
Momentum. First, a simple average of the five underlying component ratings is
calculated. Then, a normal distribution is used to rank each stock across the market
on a scale of 1 to 10, with 10 being most favorable. A score of 8 to 10 is considered
positive, 4 to 7 is neutral, and 1 to 3 is negative. These five factors may be
evaluated differently using alternative methodologies, and the importance of
individual factors varies across industry groups, market capitalization and
investment styles. Additional criteria should always be used to evaluate a stock.
A company must have sufficient data available for at least three of the five
component indicators in order to receive an overall Average Score. Approximately
85% of the stocks within the coverage universe meet the criteria to generate a
score.
Indicator Components
The five indicators that comprise the stock rating are displayed. Like the stock
rating, the component rating scale is 1 to 10, with 10 being best. A company will
receive an NR for No Rating if the required data elements or criteria are not met. A
detailed section for each component is included in the report.
Indicator Trends
Within each component section, historical score trends are displayed, typically using
a 4-week moving average over a timeframe of the past three years. The dotted
orange line indicates the average of the scores over those three years. The most
recent occurrence of the best and worst scores are also displayed on the chart in
grey boxes to put the current score into historical context.
Next to the trend chart for the company, current score averages are included, along
with peer company comparisons of values from 6 months ago, 3 months ago, 1
month ago, the most recent value from 1 week ago, and the current score. The four
closest industry peers are presented based on similar market capitalization.
Peer Analysis
The Thomson Reuters Business Classification (TRBC) system is used for
industry comparisons. It is designed to track and display the primary business of
a corporation by grouping together correlated companies that offer products and
services into similar end markets. The system includes 10 Economic Sectors, 28
Business Sectors, 54 Industry Groups, and 136 Industries.
The Peer Analysis section of the report compares the company to its ten closest
peers. The peers are selected from the industry based on similar market
capitalization. The peer listing may have fewer than ten companies if there are
fewer than ten companies within that industry classification.
Highlights
The Thomson Reuters proprietary automated text-generation system creates
highlights summarizing the most noteworthy data. The bullets will vary by company
and will change from week to week as different criteria are met.
Earnings
The Earnings Rating is based on a combination of three factors: earnings surprise,
estimate revision, and recommendation changes. Each factor is equally weighted.
Then, equal deciles are used to rank each stock across the market on a scale of 1
to 10, with 10 being most favorable. A stock needs to have at least two of the three
earnings factors in order to receive a score.
Earnings Surprises - The number of positive and negative surprises within the

last 4 periods (quarters or years).


Estimate Revisions - The number of up and down revisions and the average

Mean Estimate Trend


The mean estimates show how the consensus has changed over the past 30 days
and 90 days for the upcoming two quarters (when available) and two years. The
percentage change is calculated for the company as a means for comparison by
measuring the difference between the current consensus estimate and that of 90
days ago.
Analyst Recommendations
The Thomson Reuters I/B/E/S Mean is the mean recommendation of all analysts
covering the stock. The recommendations are presented on a five-point
standardized scale: strong buy, buy, hold, reduce, and sell.
Earnings Surprises
The surprise summary includes the total number of time periods (and
percentage) in the last 12 quarters (quarterly) or last 4 years (annual) in which
earnings surprises were positive, negative, or in-line. In order to be recognized
as a positive or negative surprise, the percent must be greater than 2% above or
2% below the consensus, respectively.
The surprise detail section includes a listing of the company's quarterly earnings
reported for the most recent 6 periods (quarters or years). The consensus
analyst estimate is provided to determine if the actual earnings report
represented a positive surprise, negative surprise, or in-line result.
Fundamental
The Fundamental Rating is based on a combination of four fundamental component
factors: profitability, debt, earnings quality, and dividend. Companies that do not
pay a dividend are not penalized. Each factor is equally weighted. Then, equal
deciles are used to rank each stock across the market on a scale of 1 to 10, with 10
being most favorable. A stock needs to have at least three of the four fundamental
factors present in order to receive a score.
Profitability is comprised of four data elements.
- Revenue Growth: (Net Sales Previous Net Sales) / Previous Net Sales
- Gross Margin: Gross Profit / Net Sales
- Return on Equity: Net Income / Total Equity
- Net Margin: Net Profit / Net Sales
Debt is comprised of four data elements.
- Current Ratio: Current Assets / Current Liabilities
- Debt-to-Capital: Total Debt / Total Capital
- Interest Funding: Interest Expense / Operating Cash Flow
- Interest Coverage: (Pre-Tax Income + Interest Expense) / Interest Expense
Earnings Quality is comprised of two data elements.
- Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory)
- Days Sales in Receivables: 365 / (Net Sales (Revenues) / Receivables)
Dividend is comprised of four data elements. The company must have a current

dividend yield.
- Dividend Growth Rate: (Dividends per Share Previous Dividends per Share)
/ Previous Dividends per Share
- Dividend Funding: Dividends / Operating Cash Flow
- Dividend Coverage: (Pre-Tax Income + Interest Expense) / (Interest Expense
+ Dividends)
- Dividend Yield: Annual Dividends per Share / Current Market Price per Share
Indicator Trend
The fundamental indicator trend displays either quarterly scores over the past three
years or annual scores over the past six years, depending on the reporting periods
for the country. The best and worst scores can be easily determined from the
values shown on the chart for each quarter or year.
Relative Valuation
The Relative Valuation Rating is based on a combination of three component
factors: Price to Sales (50% weight), Trailing P/E (25% weight), and Forward P/E
(25% weight). After the weightings are considered to combine individual factors,
equal deciles are used to rank each stock across the market on a scale of 1 to 10,
with 10 being most favorable. These common valuation metrics are evaluated
against the overall market, the index, and the company's own historic 5-year
averages. A stock needs to have at least one of the three relative valuation factors
in order to receive a score.

percentage change of those revisions within a 4 week period.


Recommendation Changes - The number of broker upgrades and downgrades in

Price to Sales: Close Price / (Sales for 4 Quarters or 1 Year / Shares

Outstanding)

the last 120 days.


Price Target
The price target is based on the predictions of analysts covering the stock and
shows the high, low and mean price expected within the next 12 months.
Earnings Per Share
The quarterly and annual earnings per share are presented when available, along
with the mean, high and low. Quarterly data is displayed for the past 4 quarters
(actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2
years (actual) and the next 2 years (estimated).

Trailing P/E: Close Price / Most Recent 4 Quarters or 1 Year of Earnings


Forward P/E: Close Price / Upcoming 4 Quarters or 1 Year of Earnings

Valuation Averages
Negative values are excluded when calculating the averages. A maximum value of
100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on
Forward PEG, and a maximum value of 20 is placed on Price to Sales when
calculating the averages. Higher values are rounded down to the maximum for the
averages.

Page 10 of 11
2014 Thomson Reuters. All rights reserved.

NMDC LIMITED (NMDC-IN)

DETAILED STOCK REPORT

Mineral Resources / Metals & Mining / Iron & Steel

Report Date: December 3, 2014


Valuation Multiples
The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and
Price to Sales for the company and the S&P 500 index average. In addition, a
comparison of the current companys values to its 5-year average and an industry
average are presented. A discount occurs when the companys ratio is valued more
favorably (lower) than that to which it is compared.
Risk
The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the
least risky stocks. It is derived by looking at a series of long-term (5-year) and
short-term (90-day) stock performance measures including volatility, magnitude of
returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles
are used to rank each stock across the market. A stock needs to have at least two
of the four risk factors in order to receive a score.
Magnitude of Returns The best / worst daily returns in the past 90 days and the

best / worst monthly returns in the past 60 months.


Volatility The standard deviation of the stock price over the last 90 days and

last 60 months, along with the average and largest intra-day stock swing.
Beta Measures the tendency of a securitys returns to respond to swings in the

market, based on the beta of the company versus the relevant index.
Correlation Determines how closely the returns of the stock and the relevant

index move together, measured over the last 90 days and last 60 months.
Risk Analysis
Price analysis for the company and the relevant index is provided over two time
periods. Daily analysis is provided for the last 90 days, whereas monthly statistics
are used for the last 60 months.
Price Momentum
The Price Momentum Rating is based on a combination of two technical
performance factors: relative strength (70% weight) and seasonality (30% weight).
After the weightings are considered to combine individual factors, equal deciles are
used to rank each stock across the market on a scale of 1 to 10, with 10 being most
favorable. A stock needs to have data for the relative strength factor in order to
receive a score.
Relative Strength The relative strength of the company for the last 1 month, 3

months, and 6 months on a scale of 1 to 100.


Seasonality The average monthly return (price performance) for the current

month and next 2 months for the company and industry, over the past 10 years.
A lower industry rank indicates a higher return.
Price Performance
Daily close prices are used to calculate the price performance of the stock. The
performance of the relevant index is also displayed as a means of comparison.

DISCLAIMER
All information in this report is assumed to be accurate to the best of our ability.
Past performance is not a guarantee of future results. The information contained in
this report is not to be construed as advice and should not be confused as any sort
of advice. Investors should consider this report as only a single factor in making
their investment decision.

Page 11 of 11
2014 Thomson Reuters. All rights reserved.