Shares of Gujarat Mineral Development Corporation (GMDC) rose sharply on Wednesday, gaining 6.1 percent to Rs 517.80 in afternoon trade, supported by renewed investor interest after reports of a forthcoming incentive scheme for rare earth magnet manufacturing. The stock touched a day’s high of Rs 525, marking a gain of 7.6 percent at its peak.
The stock has now gained nearly 60 percent year-to-date, supported by firm mineral prices and sustained demand from key industrial users. GMDC’s market capitalisation stands at about Rs 16,470 crore, while the stock trades at a price-earnings ratio of 16.41 and offers a dividend yield of 1.95 percent.
The broader mineral and mining basket also traded strong. NMDC Ltd stock was up 2 percent at Rs 74.17, while Orissa Minerals Development Company Ltd gained 1.35 percent to Rs 4,937.50.
People familiar with the plan said the scheme aims to reduce import dependence and enhance India's capabilities in high-technology applications. It targets an annual production capacity of up to 6,000 tonnes and will be supported through fiscal incentives and policy measures over a seven-year period. A formal announcement is expected once Cabinet approval is secured.
The prospect of policy support for strategic minerals and advanced material manufacturing lifted sentiment across the mining segment, with investors betting on increased domestic demand for key mineral inputs.
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