GMDC, MOIL rally up to 9%; why industrial mineral stocks in focus?

GMDC, MOIL rally on strong volume amid reports that the government approved a ₹7,280-crore incentive programme to boost domestic production of rare earth magnets.

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Gujarat Mineral Development Corporation (GMDC), MOIL share price today

 

Shares of state-owned industrial minerals companies Gujarat Mineral Development Corporation (GMDC) and MOIL rallied up to 9 per cent on the BSE in Thursday’s intra-day trade backed by heavy volumes.

 

Among individual stocks, GMDC surged 9 per cent to ₹575.65 in intra-day trade. At 01:03 PM; the stock was trading 8 per cent higher at ₹567.70 on the back of a 10-fold jump in average trading volumes. A combined 39.23 million equity shares representing 12.3 per cent of total equity of GMDC changed hands on the NSE and BSE. The stock had hit a 52-week high of ₹651.45 on October 10, 2025.

 

Shares of MOIL soared 6 per cent to ₹347.10 on the back of a four-fold jump in trading volumes. The stock had hit a 52-week high of ₹405.50 on June 10, 2025.

 

Why are industrial mineral stocks in focus today?

 

The government has approved a ₹7,280-crore incentive programme to boost domestic production of rare earth magnets. The seven-year scheme aims to establish 6,000 metric tonnes of annual magnet manufacturing capacity, including five integrated units of 1,200 tonnes each within the next three years. Overall, the scheme is expected to boost domestic production capacity in the rare earth value chain.

 

This will benefit companies like GMDC, which is developing a facility capable of processing up to 12,000 tonnes of TREO annually, including 1,800 tonnes of high-value Nd-Pr oxide (Neodymium and Praseodymium), an essential input for permanent magnets used in electric vehicles (EVs), wind turbines, aviation and other advanced industries, according to analysts at ICICI Securities.

 

Meanwhile, MOIL, a Miniratna company is the largest Manganese ore producer in India contributing almost 50 per cent share of India's Manganese ore production. MOIL is at the forefront of fulfilling India’s manganese ore needs for steel production, cementing its status as a prominent manganese mining company. The company also has a Ferro Manganese plant at Balaghat (12,000 TPA capacity) and an Electrolytic Manganese Dioxide Plant at Dongri Buzurg Mine (1,500 TPA capacity).

 

India’s finished steel consumption has grown in the double-digit range of 10-14 per cent since FY22 and has reached 150 MT in FY25. Crude steel production has increased from 89 MT in FY15 to 151 MT in FY25, a 5.4 per cent compound annual growth rate (CAGR) over the same period. As per National Steel Policy 2017, India’s Steel Production capacity and production target is to reach 300 MT and 255 MT by 2030 respectively, which will require 11 MT manganese ore, indicating huge growth potential for MOIL, according to analysts at Axis Direct. The brokerage firm has recommended a BUY rating on the stock with a target price of ₹360 per share.  ==============  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.