GMDC hits 18-month high. What's driving minerals stock 23% rally in 3 days?

Business Standard

5 days ago

Gujarat Mineral Development Corporation (GMDC) share price today
Shares of Gujarat Mineral Development Corporation (GMDC) hit a 18-month high at ₹468, as they rallied 7 per cent on the BSE in Tuesday's intra-day trade amid heavy volumes in an otherwise subdued market. In the past three days, the stock has surged 23 per cent.
The stock price of the industrial minerals company was trading at its highest level since February 2024. It had hit a record high of ₹505 on February 5, 2024. The stock has more-than-doubled or zoomed 107 per cent from its 52-week low of ₹226.20 hit on March 3, 2025.
At 11:56 AM; GMDC was quoting 6 per cent higher at ₹462.80, as compared to 0.03 per cent rise in the BSE Sensex. The average trading volumes at the counter nearly doubled. A combined 14.63 million equity shares representing 4.6 per cent of total equity of GMDC changed hands on the NSE and BSE.
Response to unusual price/ volume movement in the security of the company
GMDC said the company has made all necessary disclosures within the stipulated timelines. At present, there is no unpublished price sensitive information (UPSI) or any other material information/event that, in the opinion of the company, may have a bearing on the price or volume behavior in the scrip of the company.
GMDC made the clarification in response to a BSE Surveillance Email dated July 21, 2025 regarding an unusual price/volume movement in the security of the company.
Q1FY26 results on July 25, 2025
The board of directors of the GMDC will meet on July 25, 2025 to consider and approve the unaudited financial results for the quarter ended on June 30, 2025.
GMDC - Q4FY25 performance
The company maintained a steady performance across key financial and operational metrics, reflecting its focus on stability, efficiency, and disciplined execution. Q4FY25 marked the 3rd highest quarterly revenue from operations (₹786 crore) and profit before tax (PBT) (₹284 crore) in GMDC's history.
The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. The progress made in Odisha, particularly in the Baitarani West block, reflects the company's future-ready approach and commitment to timely execution in line with national energy priorities, the management said.
Looking ahead, GMDC estimates capex outlay to the tune of ₹15,000 crore up to FY30, with key investments being ₹7,000 crore towards capacity expansion in Lignite, ₹2,500 crore for launch of Odisha mining operations and ₹4,000 crore towards new business build in Critical minerals space.
What led to the over 100% surge in GMDC's stock price from its 52-week low?
According to media reports, the Ministry of Heavy Industries is preparing to roll out a subsidy scheme aimed at promoting domestic manufacturing of rare earth magnets.
A proposed plan by India to spur local production of rare-earth magnets has drawn initial interest from a clutch of large conglomerates, as the country seeks to cut its reliance on China for these vital electric-vehicle and wind-turbine materials. The Indian government is planning an incentive program for private sector firms manufacturing these magnets.
GMDC in its FY24 annual reports said that the company has been nominated as a prospective lessee for mining of Rare-earth elements (REE) & other associated minerals by the Department of Atomic Energy (DAE) Government of India for one of the world's largest rare earth deposits at Ambadungar, a village in Chhota Udepur district of Gujarat and is in the process of preparation and approval of mining plan.