Shares of Gujarat Mineral Development Corporation (GMDC) surged 10.37% on Friday to Rs 502.40, marking a fresh all-time high. The sharp rally comes after the Union Cabinet approved a Rs 1,500 crore incentive scheme aimed at boosting recycling capacity for extracting and producing critical minerals from secondary sources under the National Critical Mineral Mission (NCMM).

The government initiative is expected to strengthen India’s domestic capacity and improve supply chain resilience for critical minerals, a sector where GMDC stands to benefit significantly given its mining presence. GMDC is India’s largest merchant seller of lignite and the second-largest lignite producer, contributing 85–90% of its total operating income. The company also caters to over 25% of Gujarat’s total lignite demand.

Promoted by the Government of Gujarat, which holds a 74% stake as of June 30, 2025, GMDC is primarily engaged in mining and power generation. It explores opencast lignite, bauxite, fluorspar, manganese, silica sand, limestone, and bentonite mines.

In Q1FY26, GMDC delivered steady performance with strong margins and healthy profitability despite a dip in revenue. Analysts note that the company remains focused on efficiency and long-term projects.

As of March 31, 2025, GMDC operated four lignite mines with estimated reserves of 79–80 million tonnes and an average mine life of 9–10 years. It has also been allotted six new lignite blocks with combined reserves of ~360 million tonnes, with commercial production expected to commence by Q4FY26 or Q1FY27. CareEdge Ratings expects GMDC to benefit from higher production and steady demand from manufacturing industries in Gujarat.

At the current price of Rs 502.40, GMDC’s market capitalization stands at Rs 16,000 crore. The stock trades at a P/E ratio of 24.05 with a dividend yield of 2.01%. Its 52-week range now stands between Rs 226.59 and Rs 512.10.