Buy GMDC; target of Rs 160: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on GMDC

GMDC numbers were ahead of estimates (EBITDA: Rs 1.48bn vs est Rs 1.03bn, 2x YoY). This was driven mainly by lower mining costs (Rs 471/t, 13.5% YoY, -33.6% QoQ), partly due to Panandhro returning to production.

Outlook

Lowering of levies under GST will ensure that GMDC’s lignite remains competitive, which in turn will ensure strong demand. We have increased our volume assumptions (pg. 4). Our TP is now raised to 160 (6x FY19 EV/EBITDA vs 5x earlier).

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