Shares of Gujarat Mineral Development Corporation (GMDC) dropped more than 9 percent in early trade on November 2 as the Mining and Minerals company reported dismal Q2 numbers. At 9:19 am the GMDC stock was trading 9.35 percent lower at Rs 318.63 on NSE.
GMDC, the mining company, recorded profit of Rs 76 crore for the July-September period of FY24, falling sharply by 50 percent compared to the corresponding period last fiscal, with weakness in operating performance as well as top-line.
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Revenue from operations declined 29 percent to Rs 383 crore during the same period. GMDC, one of the leading mining players in India, is a State Public Undertaking of the Government of Gujarat. The state-owned company currently has five operational lignite mines located in Kutch, South Gujarat, and Bhavnagar region. It is purportedly the largest merchant seller of lignite in the country
Recent developments in GMDC
The company handed over a dividend cheque of Rs 269.44 crore to the chief minister of Gujarat recently. Under the state government’s new policy aimed at boosting the valuation of PSU shares, GMDC increased its dividend from Rs 9.10 to Rs 11.45 per share. This increase corresponds to 30 percent of GMDC’s net profit for 2022-23, as stipulated by the policy, which mandates a minimum dividend of 30 percent of profit after tax or 5 percent of net worth, whichever is higher.
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Stock Performance
GMDC stock has given a return of 121.17 percent over the last six months. The benchmark Nifty50 index has given a return of 4.64 percent over the same duration.
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