Sir, I don’t think it is fair to compare NMDC with GPIL. (Rather, one can compare GPIL with Shyam metaliks, and NMDC with MOIL)
NMDC has a history of huge capital mis-allocation over last many years and has a very poor quality promoter and management.
NMDC earned huge money over last 10 years, and remained debt free.
But what did NMDC do with that money?- it built a steel plant which hasn’t added much value.
Also, it gave the money away in Dividends (very high share as percentage of profits), as govt wants dividends from PSUs.
It spends extra money on CSR, donates to PMCare funds (over and above required limit).
It may earn huge money in coming years, but the issue remains how it invests that cash.
The employee bonuses, dividends, CSR as it did in the past? or some better use of money.
If money is spent primarily on dividends, then NMDC should be valued more like a bond or a REIT which are are valued on yield basis.
If shareholders are not getting that money compounded for their benefit, then what’s the value of that money for shareholders?