The rally has been supported by strong investor curiosity, sectoral tailwinds, and optimism surrounding the corporate’s uncommon earth mining initiatives.
The PSU inventory has witnessed important buying and selling exercise with heavy volumes, underlining robust participation from each institutional and retail buyers. GMDC has was a multibagger over the previous six months, delivering returns of greater than 107%, whereas its one-year returns stand at 46.5%.
During the last 5 years, the inventory has skyrocketed by greater than 1,100%, making it one of many standout performers within the mining sector.
The sharp rise in GMDC shares comes amid heightened expectations from the federal government’s push in the direction of uncommon earth mining to strengthen home provide chains for essential minerals.
These minerals, important for electrical automobiles, renewable vitality gear, and high-tech electronics, have positioned GMDC in a strategic place because it develops uncommon earth deposits in Gujarat’s Chhota Udaipur district. The corporate goals to construct an built-in provide chain from mining to processing, aligning with India’s broader imaginative and prescient of self-reliance in clear vitality and know-how.GMDC, India’s second-largest lignite producer and a zero-debt firm, has additionally diversified into thermal, wind, and photo voltaic vitality, strengthening its presence within the vitality and sources house.Regardless of reporting a consolidated web revenue of Rs 164 crore within the June quarter, down 11% year-on-year, and income of Rs 810 crore, down 8% YoY, the inventory has continued to draw patrons, pushed by the corporate’s progress prospects in uncommon earth components and its robust steadiness sheet.
Brokerages, nonetheless, stay cautious. Nuvama just lately retained its ‘Scale back’ ranking on the inventory, citing costly valuations and slower-than-expected ramp-up at sure lignite mines. It trimmed its goal worth from Rs 237 to Rs 231 whereas awaiting clearer developments on GMDC’s uncommon earth initiatives.
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(Disclaimer: Suggestions, options, views and opinions given by the specialists are their very own. These don’t signify the views of The Financial Occasions)
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