GMDC stock rallies 11%, nears record high on heavy volumes; here's why

GMDC stock has zoomed 122% from its 52-week low of ₹226.20 hit on March 3, 2025, and now quotes close to its all-time high of ₹505 touched on February 5, 2024.

Gujarat Mineral Development Corporation (GMDC) share price today

 

Shares of Gujarat Mineral Development Corporation (GMDC) rallied 11 per cent to ₹503.25 on the BSE in Friday’s intra-day trade amid heavy volumes in an otherwise subdued market. In comparison, the BSE Sensex was down 0.17 per cent at 80,580 at 10:42 AM. A combined 8.3 million equity shares changed hands on the NSE and BSE.

 

In the past one week, the stock price of the industrial minerals company has soared 25 per cent, as against a 0.5 per cent rise in the BSE Sensex. The stock was quoting close to its all-time high of ₹505 touched on February 5, 2024. It has zoomed 122 per cent from its 52-week low level of ₹226.20 hit on March 3, 2025.  CATCH STOCK MARKET LATEST UPDATES LIVE

 

GMDC overview/outlook

 

GMDC is promoted by Government of Gujarat with 74 per cent shareholding as on June 30, 2025. GMDC is primarily engaged in mining and power generation. GMDC is involved in exploration of opencast lignite, bauxite, fluorspar, manganese, silica sand, limestone, and bentonite mines.

 

The Union Cabinet on Wednesday approved ₹1,500 crore incentive scheme to boost recycling capacity for extracting and producing critical minerals from secondary sources. The initiative, under the National Critical Mineral Mission (NCMM), aims to strengthen India’s domestic capacity and supply chain resilience.

 

GMDC is India’s largest merchant seller of lignite and the second-largest lignite-producing company. Lignite mining contributes ~85 per cent to 90 per cent of GMDC’s total operating income (TOI). It caters to over 25 per cent of Gujarat’s total lignite demand.

 

GMDC has delivered a steady performance in June 2025 quarter (Q1FY26), with strong margins and healthy profitability despite a dip in revenue. The company has remained focused on consistency and efficiency, while also moving ahead with key long-term projects. 

 

As on March 31, 2025, GMDC operates four lignite mines with estimated reserves of ~79-80 million tonne (MT) and an average mine life of ~9 -10 years. The company has been allotted six new lignite blocks with combined reserves of ~360 MT and expects to commence commercial production from these mines in Q4FY26 or Q1FY2. CareEdge Ratings expects GMDC to benefit from higher production and sales volumes, supported by steady demand from manufacturing industries in Gujarat.  ALSO READ | Concord Control Systems shares jump 7%, hit all-time high; here's why 

GMDC is expanding its Bhavnagar mine to boost production, and its new lignite mines are expected to commence commercial production from Q4FY26 or Q1FY27. Lignite sales volume declined by 14 per cent year-on-year (YoY) in Q1FY26 to 1.98 MT due to early onset of monsoon. CareEdge Ratings expects GMDC to register lignite sales volume growth of 10 per cent to 15 per cent per annum in the near-to-medium-term. With higher sales volume and stable pricing, PBILDT margin is expected to remain healthy at ~20 per cent to 23 per cent.

 

GMDC aims to expand its capabilities in other minerals and metals, including rare earth minerals (REMs), which are used in manufacturing permanent magnets for high-tech consumer products, energy and green technology, defence and aerospace, and other industrial applications. 

 

GMDC has REMs in Chhota Udepur, Gujarat, and is developing these assets for mining, processing and marketing. GMDC also has resources of bauxite, silica sand, fluorspar and limestone, which are used in cement, agriculture, high-performance plastics and glassmaking. Bauxite mines are in Kutch and Devbhumi Dwarka, Gujarat. 

 

GMDC is exploring manganese in Panchmahal and planning underground copper mines near Ambaji, Gujarat, over the next four to five years. To expand its product portfolio, GMDC is developing capabilities for minerals such as bauxite, silica and limestone, and downstream integration in cement manufacturing. The company aims to increase revenue share from non-lignite minerals to ~50 per cent in the medium term, compared to less than 15 per cent currently, CareEdge Ratings said in rationale.