GMDC, NLC India to benefit from rare earth corridor: Divyam Mour, SAMCO Securities

Union Budget 2026: Shares of Gujarat Mineral Development Corporation Ltd (GMDC) and NLC India Ltd were trading mixed in Sunday's trade, even as the government's fresh push to develop rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

Calling it a strategic move to secure India’s critical mineral supply chain and reduce reliance on China, particularly for rare earth magnets used in electronics, EVs, and defence applications, SAMCO Securities' Divyam Mour said focus on integrated exploration, mining, refining, and downstream manufacturing would enhance domestic value addition and supports India’s high-tech manufacturing ambitions. 

"This is structurally positive for players like GMDC, which operates across the rare earth value chain from ore beneficiation to magnet manufacturing. Additionally, NLC India Limited’s collaboration with IREL (India) Limited strengthens execution capability in rare earth mining and processing, positioning these firms as long-term beneficiaries of this policy thrust," SAMCO's research analyst said.

Shares of GMDC were trading 0.89 per cent higher at Rs 583.05. NLC India fell 0.81 per cent to Rs 257.

Citing a scheme introduced in 2025 for rare earth permanent magnets, the FM Nirmala Sitharama said the government has proposed to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors and expand its rare earth scheme to promote mining, processing, research and manufacturing.

SAMCO Mour said the increased Rs 40,000 crore outlay for electronics manufacturing, coupled with industry-led research and training centres, significantly strengthens India’s ambition to build a self-reliant chip ecosystem while reducing structural dependence on China for critical semiconductor supplies.

The enhanced fiscal support improves project viability, lowers entry costs, and boosts global competitiveness for domestic manufacturers, while accelerating innovation in chip design and advanced manufacturing, he said.

"This creates a favourable environment for companies such as Kaynes Technology India Limited, CG Power and Industrial Solutions Limited, and Tata Electronics Private Limited as they scale fabrication and advanced electronics capabilities. Additionally, EMS players looking to backward integrate into semiconductors stand to benefit through higher value capture and long-term earnings visibility," he added.