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Thursday, September 9, 2010

Orissa Minerals Development Company Ltd : OMDC

Scrip Name: Orissa Minerals Development Company Ltd
BSE CODE - 590086
NSE CODE - ORISSAMINE
CMP: Rs.33775.75;
Buy at Current levels
Market Cap : Rs.2026.545 cr ; Free Float M.cap : 1013 cr
52 Week High/Low : Rs.44693.80(26Aug10)/Rs.20475(4Aug10)
Total Shares : 6,00,000 shares;
Promoters - 3,00,089 shares - 50.01%
Book Value : Rs.13194 ; Face Value - Rs.10; EPS - Rs.228.76;
Public Holding - 299911 shares - 49.99%
Enterprise Value : Rs.33775.75 per share.
Book Cls - 21-SEP-2010 ; Rec Dt - 28-SEP-2010


OMDC was incorporated in 1918, was trading on Calcutta Stock Exchange. An government owned company with promoters holding of 99.18 % as on 31 March 2010. Rashtriya Ispat Nigam Ltd, Union Govt along with state owned holding Co. owns 51% of OMDC as on 31 March 2010.
OMDC has 6 iron ore mines with combine reserve of 200 million tonnes around Rs.7000 cr. In 2009 it mined 1.66 mt of ore & posted profit of Rs.182 cr on trunover of Rs.347 cr, cash per share of Rs.13200 at Rs.792 cr.
OMDC got listed on BSE ON 4 AUG 2010, with the paid up capital of Rs. 60 Lakhs. A ZERO DEBT company.
Total Shares o/s - 6,00,000 shares.
Indian Promoter - 3,00,089 - 50.02%.
Banks/Fin.Inst/Insur. - 94500 - 15.75%.
Pvt Corporates Bodies - 36391 - 6.07%.
NRI/Foreign - 1757 - 0.29%.
General Public - 167263 - 27.88% .
Financials -
As on June 2010- (MAR 2010)
Sales - Rs.19.49 cr,(18.06)
PAT - Rs.13.72 cr,(14.81)
EPS - Rs.228.76,(246.77)
R & S - Rs.791.64 cr,(791.66)
RONW - 24.84%.


WHATS THE BUZZzzzzz.....
There are the buzz in the market that OMDC will declare Bonus & split in order to get it self listed on NSE which needs minimum paid up capital of Rs. 10 cr for listing. Its already listed on BSE which needs Rs.3 cr as min. paid up capital, this listing is done as per the alliance between BSE & CSE.
The Public holding more than 1 % are - ALLBANK FINANCE LTD - 6600 shs 1.10% ; 3 A CAPITAL SERVICES - 6738 shs 1.12% ; Asphi H Tangree - 7600 shs 1.27% ; Mahendra Giridharilal - 9198 shs 1.53% ; LIC - 92500 shs 15.42%. TOTALS - 122636 - 20.44 %

AS ALWAYS I RECOMMEND THIS WITH STRICT VERY STRICT STOPLOSS, IN ORDER TO SAVE YOUR CAPITAL......

23 comments :

  1. have you also considered the four out of six mines that are closed and whose lease is yet to be renewed ??

    ReplyDelete
  2. HI Diwakar... Thanks for reading & commenting on my post.No I have not..But I will look into it,certainly.The news of Bonus & split will drive this stock near by the target..thats why I say do keep strict stoploss.Do keep on posting ur valueable comments...to serve u all better..HAPPY INVESTING

    ReplyDelete
  3. Hi
    Please contact me further discussionOon OMDC at
    9937297782
    i have also made a detailed analysis of the same.

    ReplyDelete
  4. HI u can contact me on montyuu@gmail.com
    we can chat online...or else give me ur email on above ID.

    ReplyDelete
  5. HI bloggers_heaven thanks for reading my blog,
    The stock price of OMDC is high bcoz of very few shares available for trade,i.e. Free Float(shares available for trade) is only 167263 shares(27.88%) from the total of 6,00,000 shares in all.IF OMDC declares split/bonus the number of free float will increase & the prices will adjust accordingly...for more on stock prices & free float give me ur emailID..
    THANKS AGAIN FOR READING..KEEP ON READING

    ReplyDelete
  6. HI friends!!! More on OMDC...
    OMDC has reserves of 206 million tonnes of iron ore & 44 million tonnes of manganese ore. Company produced a total of 5.64 lakh tonne of iron ore & 0.17 lakh tonne of manganese ore in year end Mar’10. It sold 60,000 tonne sponge iron last fiscal. Company has 44 million tonnes of manganese ore reserve spread across 6 mines aggregating 4365.262 hectares (Ha) in Barbil of Orissa’s Keonjhar district. It has Thakurani iron & manganese mines with an area of 1546.55 Ha to be operational soon with an annual production capacity of 3,00,000 tonne/annum. Company has applied for enhancement of production to 3 million tonnes. Company has iron & manganese mines at Kolha Roida with an area 254.952 Ha to start production by this year end and expects to mine close to 1 lakh tonne/month.
    OMDC has iron ore & manganese mining leases in Belkundi- 1276.77 Ha; Bhadrasai- 998.70 Ha; Dalki- 266.77 Ha & Bagiaburu- 21.52 Ha. Almost all of the mines are either operating below potential or halted due to expiry of mining lease. OMDC has written to Indian Bureau of Mines for reassessment of its mines. The reserves are expected to at least double from the current 206 million tonnes. Once the assessment is complete it will lead to sharp revision in OMDC’s market capital.
    In comparison, SESAGOA has reserves of around 313 million tonnes with the market capital of Rs. 30,000 cr. OMDC is highly undervalued stock, its valuation will increase once the mining begins & Reassessment is complete. OMDC plans to increase its iron ore production to 10mtpa (million tones per annum) & 1mtpa of manganese ore by 2014-15.
    Company is investing Rs.1000 cr to set up 2mtpa pelletisation plant & 2mtpa iron ore beneficiation plant at Thakurani, also company is looking to diversify in overseas for Gold, Diamond & Coal.
    Co was relisted on CSE at Rs.26105 on OCT 17,2009. On BSE at Rs.19500 on Aug 14 2010.On NSE at Rs.33444.95 on SEP 2010. A MCAP of Rs.2400-6000 cr for 206 million tonne of reserves.

    ReplyDelete
  7. Hi Bhavik...

    The current price of OMDC is around Rs. 83,000.
    Isnt it too much...

    Wats the driving factor behind the price

    ReplyDelete
  8. Hi Bhavik,

    current OMDC price is 75,477.75. Do u recommend buying at this stage or wait for lesser price? If bought at this price, how much it can reach? or what price lesser should i invest?

    thanking you,
    Ritesh.

    ReplyDelete
  9. HI ! RITESH..THANKS FOR READING MY BLOG...
    I would advice you my friend to buy OMDC on lower levels with price target of Rs.1 Lakh...BUT my FRIEND it would be good & safe for you to BUY SESAGOA at CURRENT LEVELS & Even on the dips because OMDC has 5% CIRCUIT & You may LOSE about Rs.4000-Rs.5000 in ONE GO And you may not get chance to exit at ANY POINT....So its better to have SESAGOA A SAFE & SOUND INVESTMENT, Even you can trade SESA from time to time.LEAVE OMDC TO THE HNI's WHO CAN BARE THE LOSSES OF Rs.5000 IN A DAY.....
    THANKS ONCE AGAIN FOR READING MY BLOG DO VISIT AGAIN & DROP IN YOUR VALUABLE COMMENTS ON ANY OF MY POSTS.

    ReplyDelete
  10. Hi Bhavik,

    Thank you for the information on OMDC & advising me to buy Sesa Goa. Bought 25 shares of Sesa Goa, on further dip, will purchase more.

    Need information on Hindustan Copper & MMTC.

    I bought 100 Hindustan Copper shares with average price of Rs.481.58. I heard that there is going to be an FPO on this share next month. I am a layman in Shares, can you explain me about FPO?
    Also bought 15 MMTC shares at average price of Rs.1396.11.
    I can wait for this month on these both shares.what would you suggest for, sell or hold in nxt month?

    Thanking you,
    Ritesh.

    ReplyDelete
  11. HI !!!!
    Ritesh do send in your email id so that I may slove your queries through mails.Hindustan Copper will be offering 9.25 cr share,Govt of India is diluting 10% of its stake. Hind.Copper has 92,52,18,000 shares adding FPO shares of 9.25 cr will make the total of 101.7718 cr shares.Rest details on in your mail Box.
    Thanks for visiting Blog

    ReplyDelete
  12. Hi Bhavik,

    My email id is knps16@gmail.com.

    Thanking You,
    Ritesh.

    ReplyDelete
  13. hi Bhavik,

    i bought omdc 1sh @ Rs83716, know what can i do wait or not?

    ReplyDelete
  14. HI Nandana !!
    Thanks for your efforts to visit my blog.....
    Not to worry about your investment in OMDC, Yes INVESTMENT because its an Investment stock and not a trading stock, wait for atleast 6 months you will get your price...As you must have read my previous posts on OMDC you now have much knowledge about OMDC, And please for gods sake dont ever buy such High priced stocks these stocks are meant for Speculators & High NetWorth Individuals (HNI's),they can bear shock of loss of Rs.3000 - 5000 in a day. So please be away from such stocks .No doubt OMDC is good stock.but you can have Sesagoa were exit & entery is easy...
    So be happy and follow the Stock fundamentals....
    HAPPY INVESTING!!!!!
    DO VISIT MY BLOG AGAIN...ADD YOUR SELF TO THE FOLLOW TABB IF YOU LIKE BLOG....JUST A REQUEST..
    BHAVIKK

    ReplyDelete
  15. HI READER FRIENDS !!!
    HERE AN UPDATE ON OMDC -

    Financials:
    OMDC: The results of 2010-2011 were Sales were down from Rs.84 cr to Rs.49 cr, Net Profit fall from Rs.74 cr to Rs.22 cr, EPS falling from Rs.1240 to Rs.368.

    The company is planning to put up 2 million tones beneficiation plant and 2 million tones pellet plant at Barbil, district – Keonjhar, Orissa, to beneficiate low grade fines which are not marketable today. Necessary formalities have been completed for single window clearance from Government of Orissa and it is hoped that very shortly, company may get the said clearance. Consultancy Development Center (CDC), under Ministry of Science & Technology, Government of India, has been appointed as a consultant to fix an agency to build the plant on turn-key basis. The estimated cost of project is about Rs. 1,000/- crores.

    ReplyDelete
  16. HI Bhavikk,
    Best blog I have ever come across, keep it up...must say nice job....
    here an update for you
    OMDC has 200 mt iron ore, 400 mt limestone, 300 mt dolomite and 45 mt manganese ore. “If you look at OMDC, it has as much iron ore as India’s leading private sector iron ore miners and, as much manganese as the leading minerals player,” he said.Based on these reserves of natural resources, Bishnoi feels OMDC is still undervalued and its valuation will only increase going forward.OMDC’s full market cap stands at Rs 2,725 crore. The company reported revenues of Rs 49.8 crore and a net profit of Rs 22 crore for 2010-11.

    ReplyDelete
  17. HI READERS FRIENDS,
    AN UPDATE ON OMDC,
    The wait could soon be over for investors keen to buy a stake in Orissa Minerals Development Co (OMDC), which has six mining leases at Barbil in Orissa, with reserves of about 206 million tonne of iron ore and 44 million tonne of manganese ore.
    OMDC quoting at Rs 47,475 a share due to low liquidity, will be split within a year, followed by a bonus issue.This move will increase liquidity in the stock and help to attract retail and institutional interest, leading to higher valuation, the managements of OMDC and Rashtriya Ispat Nigam (RINL), its ultimate holding company, told shareholders on Friday.

    The improved valuation of OMDC will also reflect in the share price of Vizag-based RINL, which plans to come up with an initial public offering by November 2012, RINL chairman A P Choudhury said.

    RINL had in December acquired a 51% stake in Eastern Investment Ltd (EIL), the holding company of OMDC and Bisra Stone Lime Co Ltd (BSLC), a limestone mining company. This made RINL the holding company of EIL and its subsidiaries OMDC and BSLC.

    Retail investors would also get a chance to take exposure to EIL when its shares are available for trading on the BSE in the next 15-20 days, albeit for a limited period as RINL plans to get it merged with itself soon after its IPO

    ReplyDelete
  18. hi,
    Its been very nice blog i ever read on stocks. Congratulate to you.

    I m small investor and relatively a new also. my two and half year portfolio is about 65K having loss for 33% till date.

    I have OMDC @ 41255 a fortnight before, i still holding the same with the expectation on 55K. By reading your 17th Sept comments, i bit confused to take judgement to hold share or exit at current price. Shall it touch my target of 55K and by what time period.

    kpl_pancholi@yahoo.co.in

    - Kapil Pancholi - Ahmedabad.

    ReplyDelete
  19. Hi i am tracking omdc for last 6 yrs. Plz contact at Rohit.saboo@gmail.com or at 7798982850
    rohit

    ReplyDelete
  20. What's future of OMDC, AS OF NOW AS GOVERNMENT CHANGE

    ReplyDelete
  21. Hi Nidhi
    Thanks for visiting my blog and commenting
    I would prefere to buy sesasterlite or NMDC over OMDC
    Off course OMDC is nice scrip and it trades near it true value but I see more potentional NOW in Sesasterlite and NMDC
    I hope u enjoy the contents of the blog..
    Do visit again
    Have a great day ahead
    Regards
    Bhavikk shah

    ReplyDelete
  22. Hi Mr. Shah
    How r u

    Any Development on OMDC? We spoke long back.

    Rohit
    7798982850
    rohit.saboo@gmail.com

    ReplyDelete

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