Stock of this state-owned mining company has zoomed 120% in two months

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Shares of Gujarat Mineral Development Corporation (GMDC) hit an over four-year high of Rs 162.15, rallying 18 per cent in Thursday’s intra-day trade on expectations of strong earnings due to rising commodity prices. The stock of the state-owned mining company was traingd at its highest level since January 2018 on the back of heavy volumes.


Most of the commodities including crude oil and metals are hitting multi-year highs as tensions between Russia and Ukraine have flared up and are creating havoc in most of the asset classes.





is one of the leading mining player in India. The state-owned company currently has five operational lignite mines located in Kutch, south Gujarat, and Bhavnagar region. It is purportedly the largest merchant seller of lignite in the country.


At 12:26 pm; was trading 15 per cent higher at Rs 158, as compared to a 0.13 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold with a combined 22 million equity shares, representing 7 per cent of total equity of the company, having changed hands on the NSE and BSE.


In the past two months, the share price of has more-than-doubled or risen 120 per cent after the company reported robust earnings for December quarter (Q3FY22) with profit after tax (PAT) at Rs 150 crore against Rs 41 crore in Q2FY22. It had posted loss of Rs 3.82 crore in Q3FY21. Revenue from operations also rose 120 per cent year-on-year to Rs 725 crore from Rs 330 crore in the corresponding quarter of previous fiscal.


Meanwhile, on February 18, 2022, GMDC said it has received an amendment to its environment clearance from the Ministry of Environment and Forest to mine up to a depth of 135 meters from its earlier approved depth of 94 meters at the Tadkeshwar, lignite mines.


GMDC in its FY21 annual report said that in the coming years, coal production in the country is likely to receive a boost as the government plans to replace country’s captive mining policy in coal and iron ore with an open bidding one.


As five mining leases are reserved by central government to GMDC, it will boost the lignite production, which will help in increasing revenue of the company. There are large amount of reserves of limestone at the company’s upcoming Lakhpat Punrajpur Mining, Panandhro Extension & Bharkandam. It is also approaching various cement companies across India for setting up of cement plant where it will be a long term limestone supplier.

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