Gmdc share price: The price of shares of Gujarat Mineral Development Corporation (GMDC) Limited has doubled in the last 6 months. On Friday 4 September, the company’s stock jumped 13.17% to a new alltime high of Rs 515. At the end of the trading, the company’s shares rose by 11.60% to close at a price of Rs 508. After this boom, GMDC shares have given more than 104% returns in six months.
Company focus on rare meaning
This company owned by the Gujarat government is now focusing on critical minerals and rare meanings elements. These minerals and rare meanings are used to make electric vehicle (EV) of magnets. The company announced in May that it would invest Rs 3,000 to 4,000 crore in this sector. However, detailed information related to this investment has not been shared yet.
Support received from Central Government’s Rare Earth Mission
The central government also recently announced a rare economy mission of Rs 5000 crore. This has given a lot of support to GMDC shares. The central government has prepared an incentive scheme of ₹ 5,000 crore to promote domestic manufacturing of rare economy magnets. Its purpose is to reduce dependence on imports in EVS, wind turbines, defense and electronics.
Currently, the demand for annual rare economy magnets in India is 4,000 metric tons which can double by 2030. There are 6.9 million metric tonnes of rare economy reserves in India, but in 2024 only 2,900 tonnes of mining could be done.
What is the position on the technical chart
GMDC shares are trading above its 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages (SMAS). Its 14-day relative strength index (RSI) is at 72.53, which shows it in the overbott zone. GMDC’s P/E ratio is 24.23 and P/B value is 2.63. The company’s earnings (EPS) are 20.99, while the Return on Equity (ROE) is 10.85%. According to trendline data, the GMDC has a one-age beta of 1.8, which shows its higher volatility.
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