What's behind 40% surge in GMDC stock price in past one month?

Shares of GMDC moved higher by 8 per cent to hit an over 10-month high of ₹414 on the BSE in Friday's intra-day trade amid heavy volumes.

Share price of Gujarat Mineral Development Corporation (GMDC) today

 

Shares of Gujarat Mineral Development Corporation (GMDC) moved higher by 8 per cent to hit an over 10-month high of ₹414 on the BSE in Friday’s intra-day trade amid heavy volumes. The stock price of this industrial minerals company now quotes at its highest level since July 25, 2024. It had hit a 52-week high of ₹439.90 on July 9, 2024.

 

In the past one month, GMDC outran the market by surging 40 per cent, as compared to 2 per cent rise in the BSE Sensex. It has bounced back 83 per cent from its 52-week low of ₹226.20 touched on March 3, 2025.

 

At 02:33 PM: GMDC was quoting 7 per cent higher at ₹408.10, as compared to 0.92 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped six-fold. A combined 14.53 million equity shares representing 4.6 per cent of total equity of GMDC changed hands on the NSE and BSE. 

 

What’s driving the 40% surge in GMDC’s stock price in the past one month?

 

India's incentive scheme for recycling of critical minerals is in the final stages of getting approvals, as the country strives to meet its clean energy goals, according to a mines ministry government document, Reuters reported.

 

The scheme, which will include lithium-ion batteries, will give a capex subsidy to eligible recyclers, according to the document shared with reporters at an event. 

 

India is planning to launch incentives for the recycling of 24 critical minerals this year, including lithium and cobalt, Reuters reported in April.

 

According to media reports, GMDC has targeted to spend ₹13,000 crore in capital expenditure till 2030. An estimated 46 percent of this capex is expected to be spent on acquiring land for various projects including the coal mining projects in Odisha.

 

Approximately ₹3,000- 4,000 crore (of the proposed capex) is for critical mineral projects - two of them. An additional ₹4,000 crore is for coal projects, ₹3,000 crore for lignite projects and the company would still need to spend in excess of ₹1,000 crore for existing lignite projects, as per reports quoting Roopwant Singh (IAS), Managing Director, GMDC.

 

Meanwhile, Roopwant Singh, while announcing March 2025 quarter results on May 15, 2025 said that FY25 has been a year of steady performance and disciplined operations for GMDC.  The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. The progress made in Odisha, particularly in the Baitarani West block, reflects the company’s future-ready approach and commitment to timely execution in line with national energy priorities. 

 

GMDC Outlook

 

GMDC derives its strength from a distinguished track record of operations, a dominant position in the lignite mining sector, a diversified clientele spanning multiple industries, and favourable demand prospects.

 

Looking ahead, GMDC has formulated strategic plans to significantly deepen its market presence by scaling up lignite production capacity by FY26. The company aims to elevate its lignite production to 15 million tonnes and is proactively seeking new mining leases to support this ambitious growth target.

 

Additionally, GMDC is poised to leverage its substantial 1,700 million tonnes of limestone reserves, aspiring to become a long-term limestone supplier by commercialising these extensive resources, the company said in its FY24 annual report.

 

About Gujarat Mineral Development Corporation

 

GMDC is India's second-largest Lignite-producing company and top merchant seller of Lignite. It is a State Public Undertaking of the Government of Gujarat. The company is engaged in mining lignite from deposit-rich areas across the state, and markets it to various high-growth industries, including textiles, chemicals, ceramics, bricks and captive power.