GMDC shares advance 4% as India joins US-led Pax Silica coalition
Analysts noted GMDC plans to invest in rare earth elements. That said, any earnings from rare earth, if they come, shall happen only after FY30, Nuvama Institutional Equities said.
- Feb 20, 2026,
- Updated Feb 20, 2026 1:33 PM IST
Shares of Gujarat Mineral Development Corporation Ltd (GMDC) surged 4 per cent in Friday's trade, as India formally joined the Pax Silica coalition, which is partly about securing critical supply chains and critical minerals. GMDC, a mining and mineral processing PSU, is seen among beneficiaries of such an alliance.
The stock rose 4.42 per cent to hit a high of Rs 585.15 on BSE. Citing a scheme introduced in 2025 for rare earth permanent magnets, the FM Nirmala Sitharama in her Budget speech earlier this month proposed supporting of mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors. She proposed expanding of the rare earth scheme to promote mining, processing, research and manufacturing.
Analysts said GMDC has plans to invest in rare earth elements. That said, any earnings from rare earth, if they come, shall happen only after FY30, Nuvama Institutional Equities said. The domestic brokerage factored in all benefits, except rare earth, of lignite, coal and power and suggested 'Reduce' on the stock on February 16, with a target of Rs 231.
"Lignite power is likely to revert to profits in FY27. The volume growth from Lakhpat lignite mine and Baitarni coal block is likely from FY27E. Any earnings from rare earth, if they come, shall happen only after FY30. We have factored in all benefits (except rare earth) of lignite, coal and power. At CMP, the stock trades at elevated valuation," the brokerage said.
GMDC's projects include Lignite, Bauxite, Fluorspar, Manganese and Power. Lignite mining is its chief operation. The PSU operates over five lignite mines, namely, Mata-No-Madh, Rajpardi, Tadkeshwar, Bhavnagar and Umarsar.
GMDC operates both thermal and renewable power plants. The thermal power capacity of GMDC is 250MW at Akrimota Thermal Power Station. GMDC operates wind and solar power in Gujarat with capacity of 200.5MW and 5MW capacity respectively.
GMDC also has bauxite mining operations at its Mewasa Bauxite Mines in Devbhoomi Dwarka. GMDC also has several secondary minerals it obtains as a part of its overburden in lignite, which GMDC plans to utilize by undertaking merchant sales of mined minerals.
As per Ministry of Electronics & IT, Pax Silica is envisioned as a strategic coalition of trusted nations committed to securing the “silicon stack”, from critical minerals and semiconductor fabrication to advanced AI systems and deployment infrastructure. The initiative seeks to reduce overconcentration in global supply chains, prevent economic coercion, and ensure that emerging technologies are developed and governed by open, democratic societies.
Shares of Gujarat Mineral Development Corporation Ltd (GMDC) surged 4 per cent in Friday's trade, as India formally joined the Pax Silica coalition, which is partly about securing critical supply chains and critical minerals. GMDC, a mining and mineral processing PSU, is seen among beneficiaries of such an alliance.
The stock rose 4.42 per cent to hit a high of Rs 585.15 on BSE. Citing a scheme introduced in 2025 for rare earth permanent magnets, the FM Nirmala Sitharama in her Budget speech earlier this month proposed supporting of mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors. She proposed expanding of the rare earth scheme to promote mining, processing, research and manufacturing.
Analysts said GMDC has plans to invest in rare earth elements. That said, any earnings from rare earth, if they come, shall happen only after FY30, Nuvama Institutional Equities said. The domestic brokerage factored in all benefits, except rare earth, of lignite, coal and power and suggested 'Reduce' on the stock on February 16, with a target of Rs 231.
"Lignite power is likely to revert to profits in FY27. The volume growth from Lakhpat lignite mine and Baitarni coal block is likely from FY27E. Any earnings from rare earth, if they come, shall happen only after FY30. We have factored in all benefits (except rare earth) of lignite, coal and power. At CMP, the stock trades at elevated valuation," the brokerage said.
GMDC's projects include Lignite, Bauxite, Fluorspar, Manganese and Power. Lignite mining is its chief operation. The PSU operates over five lignite mines, namely, Mata-No-Madh, Rajpardi, Tadkeshwar, Bhavnagar and Umarsar.
GMDC operates both thermal and renewable power plants. The thermal power capacity of GMDC is 250MW at Akrimota Thermal Power Station. GMDC operates wind and solar power in Gujarat with capacity of 200.5MW and 5MW capacity respectively.
GMDC also has bauxite mining operations at its Mewasa Bauxite Mines in Devbhoomi Dwarka. GMDC also has several secondary minerals it obtains as a part of its overburden in lignite, which GMDC plans to utilize by undertaking merchant sales of mined minerals.
As per Ministry of Electronics & IT, Pax Silica is envisioned as a strategic coalition of trusted nations committed to securing the “silicon stack”, from critical minerals and semiconductor fabrication to advanced AI systems and deployment infrastructure. The initiative seeks to reduce overconcentration in global supply chains, prevent economic coercion, and ensure that emerging technologies are developed and governed by open, democratic societies.