GMDC shares rally 14% to hit all-time high; here's what analysts say

Shares of Gujarat Mineral Development Corporation (GMDC) Ltd soared 13.59 per cent on Tuesday to hit a record high of Rs 642.50 before closing 10.91 per cent higher at Rs 627.30. With this rally, the stock has delivered multibagger returns of 128.19 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. Earlier 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.

A few analysts note renewed buying interest in mines and minerals stocks. GMDC is in a strong bullish trend, trading above key EMAs, with a breakout above Rs 625.60 pointing to potential upside toward Rs 650. However, with the RSI nearing overbought levels, short-term consolidation is possible and caution is advised for fresh entries.

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.

Drumil Vithlani, Technical Research Analyst at Bonanza, stated, "GMDC is exhibiting a strong bullish trend, trading comfortably above key EMAs (50 EMA: Rs 540.85, 100 EMA: Rs 569.64, 200 EMA: Rs 593.37). The recent breakout above Rs 625.60 points to a potential move toward Rs 631.90, with further upside possible near Rs 650 if momentum continues. The RSI stands at 69.28, suggesting the stock is approaching overbought territory, which could lead to short-term consolidation or a minor pullback. Immediate support levels are at Rs 593.37 and Rs 569.64. Traders may consider buying above Rs 625.60 with a stop loss at Rs 593.37, targeting around Rs 650."

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 77.37. 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 29.89 against a price-to-book (P/B) value of 3.24. 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 1.9, 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.