GMDC drops after 6-day 18.1% rally

Gujarat Mineral Development Corporation lost 2.16% to Rs 113.40 at 15:05 IST on BSE, with the stock sliding on profit booking after recent steep rally.

Meanwhile, the S&P BSE Sensex was up 248.06 points or 1.2% at 20,956.77.

On BSE, 47,000 shares were traded in the counter as against average daily volume of 68,521 shares in the past one quarter.

The stock was volatile. The stock lost as much as 2.63% at the day's low of Rs 112.85 so far during the day. The stock rose as much as 4.4% at the day's high of Rs 121 so far during the day.

The stock had outperformed the market over the past one month till 4 December 2013, surging 7.66% compared with the Sensex's 2.5% fall. The scrip had also outperformed the market in the past one quarter, galloping 39.05% as against Sensex's 11.53% surge.

Shares of Gujarat Mineral Development Corporation (GMDC) were on a roll recently. The stock had rallied 18.14% in six trading sessions to settle at Rs 115.90 on Wednesday, 4 December 2013 from a recent low of Rs 98.10 on 26 November 2013.

GMDC's net profit fell 72.6% to Rs 46.32 crore on 54.1% decline in net sales to Rs 175.25 crore in Q2 September 2013 over Q2 September 2012.

GMDC is primarily engaged in exploration and development of mineral resources. The company produces lignite, bauxite, calcined bauxite, fluorspar and manganese ore. It is also engaged in the generation of power. The company offers lignite for various industrial units, including textiles, chemicals, ceramics, bricks and captive power.

As on 30 September 2013, the Gujarat state government held 74% stake in GMDC.

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