GMDC Share Price Jump 107% from 52-Week Low; Rare Earth Hopes Fuel Rally

Gujarat Mineral Development Corporation (GMDC) share price surged 7% on Tuesday, reaching ₹468, their highest level in 18 months. Over the past 3 days, the stock has jumped 23%, more than doubling from its 52-week low of ₹226.20 hit on March 3, 2025.

At around 11:56 AM, GMDC share price (NSE: GMDCLTD) traded 6% higher at ₹462.80, far outperforming the BSE Sensex, which was nearly flat. 

Following this, the BSE asked for clarification regarding the unusual movement in the stock. GMDC responded stating that it had no unpublished price-sensitive information and had complied with all disclosure requirements.

GMDC Upcoming Q1 FY26 Financial Results

GMDC is scheduled to announce its Q1FY26 results on July 25, 2025. The company had already shown strong numbers in Q4FY25, reporting:

• Revenue from operations: ₹786 crore (3rd highest in history)
• Profit before tax: ₹284 crore

Management emphasised a disciplined and efficient approach, especially with long-term projects like the Baitarani West block in Odisha.

Future Investment and Expansion Plans

GMDC has announced a ₹15,000 crore capex plan up to FY30. This includes:

• ₹7,000 crore for Lignite capacity expansion
• ₹2,500 crore for Odisha mining operations
• ₹4,000 crore for new ventures in critical minerals, including rare earths

Also Read: Hero MotoCorp to 3M India: Dividend & Bonus Updates This Week (July 21)!

Rare Earth Mining Potential Fuels Optimism

A key reason behind the rally is growing optimism around India's rare earth sector. Reports suggest that the Ministry of Heavy Industries is working on a subsidy program to support domestic manufacturing of rare-earth magnets—a vital component for EVs and wind turbines.

GMDC, in its FY24 annual report, confirmed it had been nominated by the Department of Atomic Energy as a prospective lessee for one of the world’s largest rare earth deposits at Ambadungar, Gujarat. The company is currently preparing a mining plan for the same.

Conclusion

GMDC's stock surge is backed by strong quarterly performance, rising investor interest in critical minerals, and potential benefits from India’s rare earth push. As the company gears up for Q1 results and long-term capex plans, it has positioned itself as a key player in India's mineral future.

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