GMDC shares surge 14% to hit fresh 52-week high. Here's why
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Shares of Gujarat Mineral Development Corporation GMDC ) surged over 14% on Friday to hit a 52-week high, driven by news of a likely meeting by the Prime Minister's Office (PMO) to discuss the rare-earth magnet crisis The stock witnessed significant volumes, with over 3 crore shares changing hands on the NSE around 2:50 pm. The total traded value stood at over Rs 1,269 crore.Over 90% of global rare earth processing and production is controlled by China, and new export restrictions by the country have raised concerns for the domestic EV industry Quoting sources, CNBC-TV18 reported that the PMO is expected to hold a high-level meeting to address the escalating supply crisis in rare earth magnets.In May, a leading Indian two-wheeler OEM warned of potential production disruptions starting as early as July due to magnet shortages. ET Auto added that this is not a hypothetical crisis—it is already affecting delivery timelines and manufacturing schedules.India holds the world's fifth-largest rare earth reserves but processes virtually none domestically. Until recently, importing finished magnets from China was the only viable option, the report noted.The smallcap stock has gained 33% year-to-date, outperforming the Nifty (up 5%) and the Sensex (up just over 4%) during the same period.GMDC, India's leading mining and mineral processing company, is the top merchant seller of lignite and the second-largest producer of lignite in the country.With a market capitalization of Rs 13,674 crore, GMDC has seen a sharp recovery from its 52-week low of Rs 226.59 on March 3.For the March quarter, GMDC reported a consolidated net profit of Rs 226 crore, a 9.2% rise from Rs 207 crore a year earlier. Revenue stood at Rs 904 crore, up 10% from Rs 822 crore in the corresponding quarter last year.According to Trendlyne, GMDC shares are trading above their 50-day and 200-day simple moving averages of Rs 379 and Rs 330, respectively.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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