New Delhi, September 5, 2025 — Shares of Gujarat Mineral Development Corporation (GMDC) are surging today, trading close to their all-time highs, powered by unprecedented trading volumes and renewed government focus on rare earth mining.
A Market Rally Unfolds
As of mid-morning, GMDC stock jumped over 10%, reaching around ₹503–₹509. The combined volume of shares traded on the NSE and BSE crossed an extraordinary 2.25 crore shares, more than 60 times its one-month average—clearly signaling heightened investor interest.
Over the past week, the stock has gained approximately 25%, while the year-to-date rally stands at 56%
Why Investors Are Backing GMDC
Focus on Rare Earths and Critical Minerals
GMDC is in prime position to benefit from the Centre’s strategic push into rare earth mining and critical minerals. With demand rising for these elements—used in EVs, renewable energy, and high-tech industries—investors see GMDC as a potential winner in India’s pursuit of mineral self-reliance.
Managing Director Roopwant Singh confirmed GMDC’s diversification into rare earths and copper, noting that rare earths, used for permanent magnets, will be key growth drivers.
Capex Roadmap: ₹13,000 Crore by 2030
GMDC has unveiled a massive ₹13,000 crore investment plan up to FY30—translating to ₹1,500–₹2,000 crore per year. Of this, ₹3,000–₹4,000 crore is earmarked specifically for critical mineral projects. In Odisha, its Baitarani West mine is expected to be a game-changer with a planned capacity of 15 MTPA—potentially ranking among India’s top 12–13 mines.
Policy Tailwinds
The Centre recently approved a ₹1,500 crore incentive scheme to boost domestic recycling of critical minerals from e-waste, EV scrap, and catalytic converters. This six-year program (FY26–31) offers a 20% capex subsidy and sales-linked incentives, improving economics for players like GMDC.
Additionally, Minister Hardeep Puri announced exploration across 1,200+ sites and strategic partnerships to secure EV, renewable power, and semiconductor supply chains, marking a diplomatic as well as operational drive.
Technical Momentum & Market Sentiment
GMDC’s chart shows strong bullish momentum—the stock is trading above its 5-, 20-, 50-, 100-, and even 200-day moving averages. With positive returns across weekly, monthly, and year-to-date timeframes, it’s among the most active and promising mid-cap stories in the Indian markets.
Company Snapshot
GMDC, a state-owned mining and power major, has been a key supplier of lignite, bauxite, fluorspar, manganese, and silica sand since 1963. It runs lignite mines (with ~79–80 million tonne reserves) and a 250 MW thermal power station in Kutch.
As of June 2025:
- Promoter holding: ~74%
- FII: 2.25%
- DII: 0.79%, and the rest with public shareholders
- For Q1 FY26: Total Income stood at ₹810.3 crore with a net profit of ₹163.9 crore—showcasing resilience even during a revenue drop.
Cautious Optimism Ahead
While excitement runs high, analysts urge caution:
- Momentum is strong, but sustaining the rally will hinge on execution of mining projects and the broader rare earth push.
- Geopolitical shifts, global supply dynamics (especially China’s dominance in rare earths), and execution risks remain key challenges.
Key Takeaways
| Indicator | Insight |
|---|---|
| Intraday gain | Over 10%, nearing ₹509 |
| Volume spike | 2.25 crore shares (60× monthly average) |
| Catalysts | Rare earth focus, large capex, policy support |
| Technical stance | Above all major moving averages |
| Company strength | Strong governance, key Indian mineral player |
| Risks to monitor | Execution, policy shifts, global supply dependencies |