India: Shares of Gujarat Mineral Development Corporation (GMDC) continued their upward streak, touching an 18-month high of ₹468 on Tuesday, July 22, 2025, following a 7% rally in intra-day trade on the BSE. This surge came even as the broader market remained relatively muted.
Over the past three trading sessions alone, GMDC stock price has soared by a massive 23%, driven by strong volumes and investor optimism. At 11:56 AM on Tuesday, GMDC shares were up 6% at ₹462.80, while the BSE Sensex inched up by a marginal 0.03%.
GMDC Stock Doubles in Value in Four Months
The stock has more than doubled jumping 107% from its 52-week low of ₹226.20 recorded on March 3, 2025. This marks the highest trading level since February 2024, when it touched an all-time high of ₹505.
Trading activity was also robust. Nearly 14.63 million equity shares changed hands across NSE and BSE, representing about 4.6% of GMDC’s total equity almost double the usual volumes.
No Hidden Info Behind Price Rally, Says GMDC
In response to a BSE surveillance query regarding the unusual spike in price and volume, GMDC clarified that there’s no unpublished price sensitive information (UPSI) or any material development currently pending disclosure. The company added that all regulatory filings have been made within the stipulated timelines.
Key Trigger: Government Focus on Rare-Earth Elements
Market experts point to policy cues as a key driver behind the stock’s rally. According to media reports, the Ministry of Heavy Industries is finalizing a subsidy scheme to promote domestic production of rare-earth magnets, a critical component in electric vehicles (EVs) and wind turbines.
With India aiming to cut its dependence on China for these strategic materials, the government is planning incentives for private firms entering the rare-earth manufacturing space. This has sparked strong interest from several large conglomerates.
Notably, in its FY24 annual report, GMDC revealed that it has been nominated by the Department of Atomic Energy (DAE) as the prospective lessee for mining rare-earth elements and other associated minerals. The proposed site, located in Ambadungar village in Gujarat’s Chhota Udepur district, is one of the world’s largest known deposits. The mining plan is currently under development and awaiting approval.
Q1FY26 Results Around the Corner
GMDC’s board is scheduled to meet on July 25, 2025, to approve the unaudited financial results for Q1FY26, ended June 30, 2025. Investors are keenly awaiting updates on the company’s performance and future roadmap.
Steady Q4FY25 Performance & ₹15,000 Cr Capex Plan
In Q4FY25, GMDC delivered one of its strongest quarters, clocking ₹786 crore in revenue and ₹284 crore in profit before tax—the third-highest in its history. The management reiterated its focus on consistency, efficiency, and long-term project execution.
Looking forward, the company has laid out a ₹15,000 crore capital expenditure plan through FY30. Key allocations include ₹7,000 crore for lignite capacity expansion, ₹2,500 crore for Odisha mining projects, and ₹4,000 crore for building new businesses in the critical minerals segment.