Why GMDC Share Price is Rising

Minerals are essential for modern industries, supporting key sectors like infrastructure, power, and cement. This makes mining crucial for industrial growth.

Rising demand across various sectors is boosting the mining industry. Gujarat Mineral Development Corporation (GMDC) is a prominent name in this mining sector that is benefitting from the sector's growth.

Over the past month, its share price has surged 34%, attracting investors' attention.

What's fueling the GMDC's recent share price surge?

Let's explore the reasons...

3 Reasons Why GMDC Share Price is Rising

#1 Rare Earth Boom

Shares of GMDC have been on the rise due to the company's growing involvement in rare earth minerals, crucial for electric vehicles, renewable energy, and high-tech electronics.

What has added fuel to the rally is that the Union Cabinet approved a Rs 15 bn incentive scheme under the National Critical Mineral Mission to promote recycling of critical minerals such as lithium, cobalt, copper, nickel, and rare earth elements.

This 6-year scheme (FY26 to FY31) aims to develop at least 270 kilo tonnes of annual recycling capacity, resulting in around 40 kilo tonnes of annual critical mineral production.

GMDC is already working towards building an end-to-end rare earth elements (REE) value chain, spanning mining, processing, separation, and manufacturing.

The company is also establishing a significant rare earth significant rare earth processing hub in India, aligning with the government's efforts to ensure a stable supply of these vital minerals.

Rare earths are essential for making electrical vehicles, renewable energy, and advanced electronics. GMDC is developing rare earth deposits in Gujarat's Chhota Udaipur district and creating an integrated supply chain for the same.

Against this backdrop, investors interest in GMDC has surged.

This rally reflects growing confidence that the company will benefit from government support, rising demand for rare earths, and its own ambitious plan in the sector.

#2 Dividend Announcement

Another reason for the share price to surge is the dividend announcement.

GMDC has declared a final dividend payout of Rs 10.1 per equity share for FY25. The record date for this same was 18 September 2025.

This is one of the highest dividend announcements by the firm in recent history, following its robust profitability and cash balances.

#3 FII & Mutual Fund Buying

Following FII selling in the June 2024 quarter, there was a turnaround in the September 2024 quarter as FIIs began increasing their stake in the company.

Then FII holdings rose again from 2.15% in March 2025 to 2.25% in June 2025.

Mutual funds have also bought the stock recently. Mutual funds increased their stake marginally from 0.12% in March 2025 to 0.13% in June 2025.

These factors have contributed to the stock's uptrend.

What Next?

Moving forward, GMDC plans to use its large limestone reserve of 1,700 million tonnes to become a long-term limestone supplier.

GMDC also aims to boost its rare earth oxide production to 12,000 tonne per year by FY28, which would significantly cut India's reliance on imports and support the government's plan for domestic magnet production.

The company's plans are centred around significant expansion and diversification, driven by high investments in REE production.

How GMDC Shares Have Performed Recently

The stock was up over 5% in intraday trade today. In the past five trading sessions, shares of GMDC are up marginally.

Over the last one year, the stock is up 56%.

The stock touched its 52-week high of Rs 587 today, 19 September 2025, and its 52-week low of Rs 226.2 on 3 March 2025.

About GMDC

Gujarat Mineral Development Corporation Ltd (GMDC) is a mining and mineral processing company in India.

It's the largest merchant seller of lignite in India. The company produces lignite, bauxite, calcined bauxite, fluorspar, and manganese ore. It's also engaged in the generation of power.

It offers lignite for various industrial units, including textiles, chemicals, ceramics, bricks, etc.

GMDC has 6 operational lignite mines with an annual production capacity of 9 m tonne per annum.

For more details, see the GMDC company fact sheet and quarterly results.

Hers are some peer group comparisons of GMDC:

GMDC vs NMDC

GMDC vs Raw Edge Industrial Solutions

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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