GMDC shares hit record high; stock doubles in 6 months: Should investors book profits?
GMDC's counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs).
- Sep 5, 2025,
- Updated Sep 5, 2025 6:48 PM IST
Shares of Gujarat Mineral Development Corporation (GMDC) Ltd soared 13.17 per cent on Friday to hit a fresh record high of Rs 515 before closing 11.60 per cent higher at Rs 508. With this rally, the stock has delivered multibagger returns of 104.19 per cent in the past six months.
The state-run miner is sharpening its focus on critical minerals, including rare earth elements, which play a crucial role in permanent magnets for the electric vehicle (EV) supply chain. In May, GMDC said it had earmarked Rs 3,000–4,000 crore for projects in the segment, though it has yet to disclose further details. Management has termed rare earths a key "value driver" for its long-term growth strategy.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, pointed to renewed buying interest in mines and minerals stocks. He recommended existing GMDC investors stay invested with a long-term view but advised caution on fresh entries at current levels.
On the technical front, analysts see support for GMDC in the Rs 473–460 range, while resistance lies above Rs 524. One analyst suggested booking partial profits after the sharp run-up.
"GMDC has experienced a notable surge in both its stock price and trading volumes, propelling it into unexplored territory and indicating a strong bullish momentum. The breakout zone, situated between Rs 460 and Rs 470, is anticipated to offer a solid buffer against any potential setbacks in value. On the upside, traders should be mindful of the Rs 540-Rs 550 range, which is likely to act as an area of resistance in the upcoming trading sessions, potentially limiting further upward movement," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.
"The stock price is bullish but overbought on daily charts with next resistance at Rs 524. Investors should be booking profits as a daily close below support of Rs 473 could lead to a target of Rs 413 in the near term," noted Sebi-registered analyst AR Ramachandran.
GMDC's counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 72.53. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The scrip has a price-to-earnings (P/E) ratio of 24.23 against a price-to-book (P/B) value of 2.63. Earnings per share (EPS) stood at 20.99 with a return on equity (RoE) of 10.85. According to Trendlyne data, GMDC has a one-year beta of 1.8, indicating high volatility.
GMDC is a state-owned enterprise and one of India's leading companies in the mining of minerals and lignite. It is headquartered in Ahmedabad, Gujarat.
Shares of Gujarat Mineral Development Corporation (GMDC) Ltd soared 13.17 per cent on Friday to hit a fresh record high of Rs 515 before closing 11.60 per cent higher at Rs 508. With this rally, the stock has delivered multibagger returns of 104.19 per cent in the past six months.
The state-run miner is sharpening its focus on critical minerals, including rare earth elements, which play a crucial role in permanent magnets for the electric vehicle (EV) supply chain. In May, GMDC said it had earmarked Rs 3,000–4,000 crore for projects in the segment, though it has yet to disclose further details. Management has termed rare earths a key "value driver" for its long-term growth strategy.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, pointed to renewed buying interest in mines and minerals stocks. He recommended existing GMDC investors stay invested with a long-term view but advised caution on fresh entries at current levels.
On the technical front, analysts see support for GMDC in the Rs 473–460 range, while resistance lies above Rs 524. One analyst suggested booking partial profits after the sharp run-up.
"GMDC has experienced a notable surge in both its stock price and trading volumes, propelling it into unexplored territory and indicating a strong bullish momentum. The breakout zone, situated between Rs 460 and Rs 470, is anticipated to offer a solid buffer against any potential setbacks in value. On the upside, traders should be mindful of the Rs 540-Rs 550 range, which is likely to act as an area of resistance in the upcoming trading sessions, potentially limiting further upward movement," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.
"The stock price is bullish but overbought on daily charts with next resistance at Rs 524. Investors should be booking profits as a daily close below support of Rs 473 could lead to a target of Rs 413 in the near term," noted Sebi-registered analyst AR Ramachandran.
GMDC's counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 72.53. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The scrip has a price-to-earnings (P/E) ratio of 24.23 against a price-to-book (P/B) value of 2.63. Earnings per share (EPS) stood at 20.99 with a return on equity (RoE) of 10.85. According to Trendlyne data, GMDC has a one-year beta of 1.8, indicating high volatility.
GMDC is a state-owned enterprise and one of India's leading companies in the mining of minerals and lignite. It is headquartered in Ahmedabad, Gujarat.