Shares of Gujarat Mineral Development Corporation (GMDC) Ltd surged sharply in Friday’s trade, climbing 16.61 per cent to touch a record high of Rs 442.50. The rally followed media reports suggesting that the Prime Minister’s Office (PMO) is likely to convene a key stakeholder meeting to address the ongoing rare-earth magnet crisis.
GMDC has previously expressed its intention to venture into the critical minerals segment, including rare earth elements. Although the company has not officially disclosed detailed plans, it views rare earths as a potential ‘value driver’ due to their use in permanent magnets, which are essential for the electric vehicle (EV) supply chain. In May, GMDC announced it had earmarked around Rs 3,000–4,000 crore for critical mineral projects, though it did not provide further specifics.
On the technical front, one analyst noted that the stock appears bullish but is currently in an overbought zone, while another suggested a near-term trading range between Rs 400 and Rs 450. That said, a decisive move above Rs 450 is required for further upside potential.
According to Osho Krishan, Senior Analyst at Angel One, GMDC has witnessed a significant surge in price and volume. “The technical structure seems sturdy, with support placed around the 418-404 subzone in the near period. On the higher end, a sustained move beyond 450 is likely to trigger next leg of rally towards Rs 480 level in the comparable period,” he also said.
According to Sebi-registered independent analyst AR Ramachandran, “GMDC is bullish on daily charts but also slightly overbought with next the resistance at Rs 455. Investors should be booking profits as a daily close below the support of Rs 406 could lead to a downward target of Rs 375 in the near term.”
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, said support lies at Rs 410 and resistance at Rs 440. A sustained move above Rs 440 could push the stock towards Rs 450, with the near-term trading range seen between Rs 400 and Rs 450.
GMDC is a state-owned enterprise and one of India’s leading companies in the mining of minerals and lignite. It is headquartered in Ahmedabad, Gujarat