The shares of one of the leading mining and mineral processing companies gained up to 5 percent after the company board approved a capital outlay of Rs 3,041 crore for a different project.
With a market capitalization of Rs 13,204.95 crore, the shares of Gujarat Mineral Development Corporation Ltd closed at Rs 415.25 per share, increased around 3.48 percent as compared to the previous closing price of Rs 401.30 apiece.
According to the company filing, Gujarat Mineral Development Corporation Ltd board approved a capital outlay of Rs 3,041 crore for a different project which is, firstly, with a strategic allocation of Rs 1,138 crore towards new lignite projects. This investment will help to strengthen its existing lignite initiatives while also supporting the establishment of new businesses.
Secondly, GMDC dedicates Rs 629 crore to expedite the operationalization of the allotted coal blocks in Odisha. Furthermore, the company allotted Rs 462 crore for the expansion and modernization of its metal projects.
Moreover, GMDC is strategically investing Rs 371 crore into the development of power projects, with a significant emphasis on renewable energy, and over Rs 300 crore is allocated for the comprehensive overhaul of the ATPS (Akrimota Thermal Power Station).
This capex plan is not only focused on enhancing the efficiency and sustainability of thermal operations but is also intricately coupled with careful management of capex allowance, reflecting a balanced approach to capital expenditure.
The company has had multi-bagger gains of 88.19% in the previous six months and 199.60% in a year. An investment of Rs.1 lakh in the company yields a return of Rs.2.99 lakh each year.
Looking at their financials the company’s net revenue declined by 34 percent year over year, from Rs 855 crore in Q3FY23 to Rs 564 crore in Q3FY24. During the same time frame, net profit declined by 56 percent from Rs 266 crore to Rs 117 crore.
Gujarat Mineral Development Corporation primarily engages in two sectors: mining and power. Its projects cover lignite, bauxite, fluorspar, multimetal, manganese, electricity, wind, and solar.
Written by:- Abhishek Singh
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