GMDC, MOIL, NALCO shares jump up to 9%; check reason, target prices

Shares of Gujarat Mineral Development Corporation Ltd (GMDC), National Aluminium Company Ltd (NALCO) and Moil Ltd surged in Thursday's trade, reacting sharply to the Union Cabinet's approval of a new incentive scheme for manufacturing Rare Earth Permanent Magnets (REPM) in India.

GMDC rose 9.14 per cent to hit Rs 575.65, NALCO gained 2.87 per cent to Rs 265.55 and Moil advanced 5.98 per cent to Rs 347.10.

The rally came after the Cabinet cleared a "first-of-its-kind" scheme with a financial outlay of Rs 7,280 crore to promote domestic REPM manufacturing. The 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' aims to set up 6,000 metric tonnes per annum (MTPA) of integrated REPM capacity, enhancing India's self-reliance and positioning it as a meaningful participant in the global magnet supply chain.

The development follows Commerce Minister Piyush Goyal's recent comments highlighting the "tremendous potential" for India and Canada to collaborate on critical minerals, as both countries resumed discussions on a Comprehensive Economic Partnership Agreement.

Commenting on GMDC, Rajesh Palviya, Head Technical Research at Axis Securities, told Business Today, "If the counter continues to trade above Rs 555 level, next targets would be around 585–590."

Palviya also sees strength in Moil from a mid-cap perspective, stating, "Chart-wise, the stock is showing a very strong recovery. We have initiated a buy on Moil, projecting a target prices of Rs 365–370."

On NALCO, he pointed to a strong technical setup as the stock trades near its all-time high zone. "This stock has potential to extend its gains and we could see next targets from a positional perspective of Rs 295–300. So, buy and accumulate would be the strategy for NALCO."