GMDC shares surge 7%; what analysts are saying
GMDC is eyeing opportunities in the critical minerals space, including rare earth elements, as part of its future growth strategy.
- Sep 1, 2025,
- Updated Sep 1, 2025 5:15 PM IST
Shares of Gujarat Mineral Development Corporation (GMDC) Ltd jumped 6.60 per cent on Monday to settle at Rs 430.50. At this closing price, the stock has rallied 80.59 per cent in the last six months. It saw heavy trading volume along with the price action as around 4.12 lakh shares changed hands on BSE. The figure was higher than the two-week average volume of 1.85 lakh shares. Turnover on the counter came at Rs 17.58 crore, commanding a market capitalisation (m-cap) of Rs 13,720.11 crore.
GMDC is eyeing opportunities in the critical minerals space, including rare earth elements, as part of its future growth strategy. While the company has not shared detailed plans, it considers rare earths a key "value driver" given their role in permanent magnets used in the electric vehicle (EV) supply chain.
In May, GMDC said it had earmarked Rs 3,000–4,000 crore for projects in the critical minerals segment, though it did not provide further details.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted renewed buying interest in mines and minerals stocks. He advised existing investors in GMDC to hold their positions with a long-term perspective, while cautioning against fresh entries at current levels.
From a technical standpoint, analysts see strong support for the stock around Rs 400. Resistance is placed near Rs 435–436 and a sustained breakout above this level could trigger a rally towards Rs 450–480.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "The overall structure seems sturdy, with support placed around Rs 400 in the near period. On the higher end, a sustained move beyond Rs 436 is likely to trigger the next leg of rally towards Rs 480 zone in the comparable period."
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, placed support at Rs 400 and resistance at Rs 435. He expects the counter to trade in the Rs 400–450 zone near term, with scope to move higher if it sustains above Rs 435.
The stock 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 55.87. 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 20.56 against a price-to-book (P/B) value of 2.23. 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 jumped 6.60 per cent on Monday to settle at Rs 430.50. At this closing price, the stock has rallied 80.59 per cent in the last six months. It saw heavy trading volume along with the price action as around 4.12 lakh shares changed hands on BSE. The figure was higher than the two-week average volume of 1.85 lakh shares. Turnover on the counter came at Rs 17.58 crore, commanding a market capitalisation (m-cap) of Rs 13,720.11 crore.
GMDC is eyeing opportunities in the critical minerals space, including rare earth elements, as part of its future growth strategy. While the company has not shared detailed plans, it considers rare earths a key "value driver" given their role in permanent magnets used in the electric vehicle (EV) supply chain.
In May, GMDC said it had earmarked Rs 3,000–4,000 crore for projects in the critical minerals segment, though it did not provide further details.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted renewed buying interest in mines and minerals stocks. He advised existing investors in GMDC to hold their positions with a long-term perspective, while cautioning against fresh entries at current levels.
From a technical standpoint, analysts see strong support for the stock around Rs 400. Resistance is placed near Rs 435–436 and a sustained breakout above this level could trigger a rally towards Rs 450–480.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "The overall structure seems sturdy, with support placed around Rs 400 in the near period. On the higher end, a sustained move beyond Rs 436 is likely to trigger the next leg of rally towards Rs 480 zone in the comparable period."
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, placed support at Rs 400 and resistance at Rs 435. He expects the counter to trade in the Rs 400–450 zone near term, with scope to move higher if it sustains above Rs 435.
The stock 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 55.87. 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 20.56 against a price-to-book (P/B) value of 2.23. 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.