The shares of one of the leading mining and mineral processing companies gained up to 11 percent after the company received approval for the environmental clearance for the capacity expansion from 3 MTPA to MTPA of lignite.
With a market capitalization of Rs 15,230.61 crore, the shares of Gujarat Mineral Development Corporation Ltd closed at Rs 478.95 per share, increased around 6 percent as compared to the previous closing price of Rs 452.15 apiece.
According to the company filing, Gujarat Mineral Development Corporation Ltd received approval for the environmental clearance for the capacity expansion from 3 MTPA to MTPA of lignite for the Surkha lignite mine, by the Ministry of Environment, Forest, and Climate Change.
Furthermore, the Surkha(N) Lignite Mine is strategically important for GMDC. This expansion not only increases output but also reflects GMDC’s commitment to sustainability and appropriate resource usage.
Additionally, GMDC will play an important part in the state’s economic environment. The yearly rise of lignite production is expected to meet the energy demands of companies in Saurashtra and Gujarat, encouraging robust growth and development across several sectors in the state.
Looking at their financials the company’s net revenue declined by 28 percent year over year, from Rs 539 crore in Q2FY23 to Rs 383 crore in Q2FY24. During the same time frame, net profit declined by 50 percent from Rs 151 crore to Rs 75 crore.
The stock has delivered multi-bagger returns of 187.95 percent in the last six months and 209.81 percent in a year. If an investor invests Rs.1 lakh in the firm, it will be worth Rs.3.09 lakh each year.
In 2023, the company emerged as the highest bidder of two coal blocks in Odisha. First the Burapahar block with a geological reserve of 548 MT and the second Baitarani (West) block with a geological reserve of 1,097 MT.
During fiscal year 2022-23, the firm sold 2.56 lakh MT of bauxite. GMDC’s bauxite mining operations help India to achieve its goal of Aatmanirbhar Bharat. The firm is well prepared to secure its availability and consistent supply, reducing India’s reliance on imports.
Gujarat Mineral Development Corporation operates largely in two sectors: mining and electricity. Its initiatives include lignite, bauxite, fluorspar, multimetal, manganese, power, wind, and solar.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
