Gujarat Mineral Development Corporation Ltd (GMDC) is taking a breather today after a ferocious three-day rally powered by India’s new rare earth magnet incentive scheme. Around late morning trade on 28 November 2025, GMDC shares were hovering near ₹543–544 on the NSE and BSE, down roughly 1.7% from Thursday’s close of ₹553.15. Kotak Securities
The pause comes after the stock jumped more than 20% over the last three sessions as the Union Cabinet cleared a ₹7,280 crore plan to promote domestic manufacturing of rare earth permanent magnets (REPM), with GMDC tagged as a potential winner in India’s critical-minerals push. The Economic Times
GMDC share price today: profit booking after a three-day surge
According to intraday data from multiple broker platforms, GMDC opened at ₹555 today and has traded between ₹540.50 and ₹556.30 so far. At about 11:30–11:45 AM IST, quotes clustered around ₹543–544, implying a decline of roughly 1.7% for the day. Kotak Securities
Angel One pegs the volume at over 42.7 lakh shares by late morning, with a market capitalisation around ₹17,570–17,590 crore and a 52-week range of ₹226.59 to ₹651.00. Angel One
An ETMarkets report published at 11:31 AM notes that GMDC shares slipped to an intraday low of ₹540.40, down about 2.2%, as traders locked in profits following the rare earth–driven spike. The Economic Times The report highlights that:
- The stock had gained nearly 23% in the last three sessions on optimism about the government’s ₹7,280 crore REPM scheme.
- Today’s decline is characterised as classic profit booking rather than a structural reversal. The Economic Times
Technically, the same article points out that GMDC is now trading just below its 20-day exponential moving average (EMA) of around ₹545.3, while still comfortably above its 100-day and 200-day EMAs (roughly ₹510.5 and ₹454.6 respectively). The Economic Times That combination usually signals a short-term pause inside a still-intact broader uptrend.
All the major GMDC headlines dated 28 November 2025
For today, 28 November 2025, GMDC is in the news across multiple fronts. Here are the main pieces investors are watching:
1. ETMarkets: “GMDC shares snap 3-day rally, fall 2% as traders opt to book profits”
- Published: 11:31 AM IST, 28 November 2025. The Economic Times
- Focus: Explains today’s dip as short-term profit booking after sharp gains triggered by the rare earth magnet scheme.
- Key point: Short-term EMAs are now acting as resistance, but 100- and 200-day EMAs still support a bullish long-term structure. The Economic Times
- The story reiterates that GMDC is seen as a key player in bauxite, rare earth minerals and lithium exploration within India’s strategic minerals ecosystem. The Economic Times
2. ETMarkets slideshow: “GMDC among 4 stocks showing bullish RSI upswing”
- Published: 9:07 AM IST, 28 November 2025. The Economic Times
- Focus: Technical momentum. The slideshow flags GMDC as one of four Nifty 500 stocks where the Relative Strength Index (RSI) has moved above 50, signalling strengthening momentum.
- For GMDC specifically, the feature cites an RSI rising from 44.32 to 50.50 with a closing price of ₹553.15 on 27 November, reinforcing the short-term bullish tone that preceded today’s cool-off. The Economic Times
3. Financial Express: “The ‘China Plus One’ winners: 3 PSUs set to ride India’s massive rare earths push”
- Published: 05:30 AM IST, 28 November 2025. The Financial Express
- Focus: A strategic, big-picture take on India’s rare earth policy, highlighting three PSUs — including GMDC — as key beneficiaries of New Delhi’s China+1 diversification strategy.
- The article describes GMDC as a state-run miner with a large lignite and industrial-minerals base that is now pivoting into rare earths via deposits like Ambadungar in Gujarat. It notes that the company has outlined a multi-year capex plan (well into the tens of thousands of crores) to expand lignite, coal, and critical minerals capacity under an internal growth blueprint often referred to as “Project Shikhar.” The Financial Express
4. MarketsMojo: “Gujarat Mineral Development Corporation Sees Robust Trading Activity Amid Market Rally”
- Latest update: Listed as “2 hours ago” today. Markets Mojo
- Focus: Trading dynamics rather than fundamentals. The note highlights how GMDC has seen exceptionally high turnover in recent sessions.
- On 27 November, the stock recorded traded volume of about 1.13 crore shares and value near ₹630 crore, putting it among the most active counters in the minerals and mining space and underscoring strong liquidity. Markets Mojo
- The piece points out that while delivery volumes are rising, near-term resistance around short-term moving averages indicates a potentially choppy path, typical of high-momentum small- and mid-cap rallies. Markets Mojo
Taken together, today’s coverage paints a picture of a stock that has run very hard on a powerful policy narrative and is now consolidating as traders digest gains.
What sparked the rally? The rare earth magnet incentive scheme
GMDC’s latest move cannot be understood without the rare earth magnet story.
On 27 November, Business Standard reported that GMDC gained nearly 8% intraday to around ₹569.10 as the Union Cabinet approved a major incentive scheme for manufacturing sintered rare earth permanent magnets (REPM). Business Standard Key elements of the scheme include:
- Total outlay: About ₹7,280 crore over seven years.
- Capacity target: 6,000 metric tonnes per annum of integrated REPM capacity in India.
- Structure:
- Roughly ₹6,450 crore of sales-linked incentives over five years.
- About ₹750 crore in capital subsidies for magnet projects.
- Allocation: Capacity to be bid out to up to five beneficiaries, each capped at ~1,200 MTPA. Business Standard
Rare earth magnets are crucial for electric vehicles, wind turbines, consumer electronics, aerospace and defence — sectors India is aggressively nurturing. By cutting import dependence and building a domestic REPM supply chain, the government hopes to secure strategic materials and support its clean-energy agenda. Business Standard
Given GMDC’s public positioning around rare earth elements (REEs) and critical minerals, the market quickly slotted the stock into the “policy beneficiary” basket, triggering the recent surge.
But is GMDC a pure rare earth play yet?
Today’s Financial Express and earlier Moneycontrol coverage both make a nuanced point: GMDC is strategically aligned with rare earths, but the investment theme is still aspirational, not fully operational.
Moneycontrol’s deep dive on 27 November notes that while GMDC and other mineral stocks rallied sharply on the REPM news, no domestic miner is yet positioned to benefit meaningfully from the full magnet value chain. Moneycontrol Key constraints highlighted include:
- India currently has only one significant REE miner and oxide producer, IREL (under the Department of Atomic Energy), whose annual oxide capacity is reportedly about 500 tonnes.
- To support the government’s 6,000 tonne REPM target, magnet makers would need roughly 1,500 tonnes of rare earth oxides every year, leaving a substantial deficit that would still have to be imported. Moneycontrol
- Market experts quoted in the article argue that GMDC’s long-discussed rare earth ambitions have not yet translated into a scalable, integrated business, and that the recent rally appears to be running ahead of fundamentals. Moneycontrol
In other words, the policy story is real, but the cash-flow story will take time to catch up.
GMDC’s strategic pivot: from lignite-heavy legacy to critical minerals
Beyond the headlines, GMDC has been telegraphing a serious strategic shift throughout 2025.
At the IME 2025 mining expo, GMDC outlined plans to create India’s first hard-rock rare earth ecosystem, moving beyond its traditional lignite franchise into higher-value critical minerals and base metals. Home 3 | B2B Purchase Highlights from that interview and from credit rating reports include:
- Legacy base: GMDC remains India’s largest merchant seller of lignite, with six operational lignite mines in Gujarat and substantial bauxite and fluorspar operations. Kotak Securities
- New frontiers:
- Coal mining projects in Odisha, where the company has secured multiple blocks.
- Revival of the Ambaji multi-metal deposit in Gujarat, expected to yield copper, lead and zinc with copper as the primary value driver. Home 3 | B2B Purchase
- Entry into the rare earth elements (REE) value chain, with ambitions to develop an “end-to-end ecosystem” from mining to processing. Home 3 | B2B Purchase
- Energy transition angle: GMDC operates about 200 MW of wind power and 5 MW of solar capacity, using reclaimed mine land, and presents these assets as part of its ESG and net-zero alignment. Home 3 | B2B Purchase
CARE Ratings, in its August 2025 credit note, estimates that GMDC has lined up ₹12,000–13,000 crore of capex over the next five to six years, split roughly as: CARE Ratings
- ~₹5,000 crore for expanding lignite mines,
- ~₹4,000 crore for coal projects in Odisha, and
- ~₹4,000 crore for multi-metal and rare earth projects (including copper, limestone and bauxite).
A separate Equitymaster analysis adds that GMDC’s broader plan through FY30 envisages around ₹150 billion in investments, including lignite expansion, Odisha mining, and critical minerals, and targets raising rare earth oxide production to about 12,000 tonnes per year by FY28. Equitymaster
These are big, capital-intensive bets that, if executed well, could transform GMDC’s earnings mix — but they also introduce execution and regulatory risk.
Q2 FY26 results: modest revenue, outsized profit on one-off gains
GMDC’s latest reported quarter (Q2 FY26) helps explain why the market is so focused on policy tailwinds rather than underlying organic growth.
An earnings summary from AlphaStreet notes that for Q2 FY26: Business Standard
- Net sales / operating revenue: Around ₹527–528 crore, down about 11% year-on-year.
- Total expenses: Roughly ₹481 crore, slightly higher than the year-ago period.
- Consolidated net profit (PAT): About ₹465–466 crore, up roughly 260–265% YoY.
- Earnings per share (EPS): Jumped from about ₹4 in the year-ago quarter to roughly ₹14–15.
Business Standard attributes this extraordinary profit growth largely to an exceptional gain of about ₹474 crore arising from tax changes: after the GST rate on lignite was raised from 5% to 18% and the compensation cess was removed (effective 22 September 2025), GMDC was able to recognise accumulated input tax credits that it had previously expensed due to an inverted duty structure. Business Standard
IndMoney’s result dashboard, which treats “revenue” more broadly, shows total Q2 income around ₹1,110 crore with a net margin of about 42%, up from ~19.5% a year earlier, again underscoring how much of the quarter’s profitability was driven by the one-off GST-related gain rather than pure operating leverage. INDmoney
The takeaway: GMDC’s underlying business had a soft quarter on revenue, but reported earnings were flattered by a large, non-recurring tax credit. That context is important when interpreting valuation metrics.
How is the market valuing GMDC now?
Brokerage and data platforms differ slightly in their calculations, but they broadly agree that GMDC has rerated sharply over the last year.
From Angel One and IndMoney today (11:15–11:45 AM IST) we can summarise: Angel One
- Price: ~₹543–544.
- Market cap: ~₹17,570–17,590 crore.
- TTM P/E: Around 17.5x on several platforms, versus a sector multiple in the ~11–15x range depending on the comparator set.
- P/B: Roughly 2.6x.
- TTM ROE: Around 9–11%.
- Dividend yield: Around 1.8–2%.
- Performance:
- 1-week return: about +11%,
- 6-month return: ~+52%,
- 1-year return: roughly +57%,
- 3-year total return: well over +250%.
In addition, an Equitymaster note on 27 November pointed out that GMDC’s share price has surged about 60% year-to-date, with a 5-day gain of about 14.3% and a 6-month gain of around 58.6%, and that it has traded between a 52-week low of ₹226.2 and a 52-week high of ₹651.4. Equitymaster
Put simply, GMDC is no longer a “cheap” PSU mining stock; it’s priced as a policy- and growth-sensitive play with meaningful expectations baked in.
What should investors watch from here?
While this article is not a recommendation to buy, sell or hold GMDC, today’s newsflow points to several themes that are likely to drive the stock in coming months:
- Policy execution, not just announcements:
The rare earth magnet scheme is now approved, but the real test will be how quickly capacity gets allocated, which companies secure bids, and whether domestic oxide supply can scale beyond IREL’s limited output. GMDC’s actual role in that value chain is still evolving. Business Standard - Capex delivery and timelines:
With ₹12,000–13,000 crore of planned capex across lignite, coal and multi-metal projects, delays in land acquisition, clearances or project execution — especially in new geographies like Odisha — could strain cash flows or push back expected returns. CARE Ratings - Quality of earnings versus one-offs:
The big GST-related gain that boosted Q2 FY26 profits will not repeat every quarter. Future results will be scrutinised for how much of GMDC’s profitability comes from regular operations in lignite, power and critical minerals versus accounting adjustments. Business Standard - Valuation versus sector and history:
With P/E and P/B multiples now at a premium to many traditional mining peers, any disappointment on project execution, policy clarity, or commodity prices could make the stock more sensitive to corrections, just as we saw with today’s profit booking. Angel One - Technical momentum and liquidity:
Rising RSI, elevated turnover and strong delivery volumes underscore that GMDC has become a favourite of momentum traders and quant screens — a double-edged sword that can amplify both rallies and pullbacks. The Economic Times
Bottom line
GMDC’s stock story on 28 November 2025 is not about a simple price drop; it’s about a market catching its breath after sprinting ahead of the fundamentals.
- The company is at the centre of several powerful themes — rare earths, critical minerals, energy transition and Indian self-reliance.
- Policy support has clearly improved its strategic narrative and attracted new investors.
- At the same time, supply constraints, long capex cycles, and one-off boosts to earnings mean that the fundamental picture is more complex than the recent price chart might suggest.
For now, GMDC sits where many policy-backed PSUs eventually land: between ambitious long-term potential and near-term execution risk, with a share price that already reflects a good chunk of the story.
