GMDC stock extends rally with 5 percent surge; Sona Comstar also gains on rare earth magnet plans

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26 Aug, 2025 12:21

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Shares of Gujarat Mineral Development Corporation (GMDC) jumped over 9 percent to an intraday high of Rs 575.9 on Thursday, extending the strong momentum seen this week following the approval for a large rare earth incentive scheme. The stock ended at Rs 553.6, up 4.8 percent from the previous close.

The stock has now risen 14 percent over the past two sessions and is up about 71 percent so far this year. GMDC’s market capitalisation stands at Rs 180.81 billion, while the stock trades at a price-earnings ratio of 18 and offers a dividend yield of 1.78 percent.

The gains follow improving sentiment around domestic mineral and metals producers after reports the Union Cabinet on Wednesday approved a major incentive scheme for rare earth permanent magnet (REPM) manufacturing. Investors are betting on companies positioned to benefit from potential policy support aimed at building a domestic ecosystem for strategic minerals and advanced materials.

This will benefits companies like GMDC, which is developing a facility capable of processing total rare earth oxides including high-value Neodymium and Praseodymium oxide, an essential input for permanent magnets, said ICICI Securities regarding the investment scheme.

Sona BLW Precision Forgings Ltd (Sona Comstar) stock also jumped, rising 2.6 percent intraday, before paring gains and ending at Rs 509.5, up 0.45 percent.

However, the stock remains down 13 percent year-to-date. The company, with a market capitalisation of Rs 322.49 billion and a P/E ratio of 52.37, has a dividend yield of 0.62 percent.

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The continued strength in GMDC and the uptick in Sona Comstar reflect heightened investor interest in companies linked to strategic mineral production and the emerging domestic rare earth magnet ecosystem.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.