GMDC PSU Rare Earth Materials Stock Soar 60 Percent
The shares of Gujarat Mineral Development Corporation (GMDC) saw a tremendous rise of about 15% on Friday. The reason for this surge is a big news, in which it was said that the Prime Minister’s Office (PMO) is going to hold an important meeting on the crisis of the rare economy material. This meeting will focus on the strategy to strengthen the supply of rare economy and critical minerals in the country. GMDC, which is the second largest lignite producing company in the country, is also now preparing to play a big bet in the sector of the rare economy. After this news came to light, brokerage firms are very excited about this stock and are estimating a great lead of up to 60%.
GMDC is going to enter the rare meaning sector
GMDC is a State Public Sector Unit (PSU), which is mainly active in lignite mining and sales. The company has its strong presence in sectors such as textile, ceramics, bricks and captive power. Recently, the company announced that it is planning to step into the field of rare economy and critical minerals. In May, the management of GMDC said that Rs 3,000 to 4,000 crore will be invested for this. Rare Earth Materials have been described by the company as a ‘value driver’ of the coming time, as they play an important role in electric vehicles (EV), wind turbines and high-performance electronics.
60% upside target of GMDC
Brokerage House Ventura Securities has taken a super bulish stance on GMDC shares. His latest report states that a big breakout is being seen technically in the stock. This stock can give great opportunity for investors for long term. Brokerage has given a target price of Rs 700, which is about 60% more than the current price of Rs 435.
Ventura also stated that if the stock declines, the first support will be available at Rs 383, the second Rs 365 and the third Rs 347. A stoploss of Rs 305 has been suggested to investors, which is 30% below the current price. In this way the risk-relieving ratio is 1: 2, which is considered attractive for investment.
90% Returns in four months
The story of GMDC shares has been quite interesting in the last few months. In March 2023, the stock was at a low of Rs 123, from where it took a tremendous bounce. In February 2024, the stock made an all-time high of Rs 505. After this, due to profit booking, it fell to Rs 226 in March 2025, which was the lowest level of this year. But in the last four months, the stock has shown recovery of more than 90%.
Rare Earth Materials’s Global Market is under China’s possession
The global market of Rare Earth Materials is in the possession of China. China has 49% rare economy reserves and 69% mining as well as 90% refining with China. Rare Earth Elements (Ree) include 17 strategic minerals, which are used in electric vehicles and wind turbines, while heavy rare meaning elements (Hree) are used in military grade magnets and high-tech electronics. Due to this strategic grip of China, countries like India are facing problems in the supply chain. In such a situation, the entry in the rare meaning sector of GMDC can prove to be a game-changer for India.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.