Synopsis: GMDC shares jumped 12% on the Ministry of Heavy Industries’ ₹7,280 crore rare earth magnet tender for manufacturing facilities with a capacity of 6,000 MTPA, followed by heavy trading volumes and technical factors.
The shares of the Small-cap, specialising in mining and processing key industrial minerals, primarily Lignite, Bauxite, Fluorspar, Manganese, and Silica Sand, are in focus upon rallying 12 percent in the day’s trade after the centre Invites Bids For Rare Earth Magnet Projects and others.
With a market capitalization of Rs. 18,886.02 Crores on the Day’s Trade, the shares of Gujarat Mineral Development Corporation Ltd jumped upto 12.1 percent, reaching a high of Rs. 599.00 compared to its previous close price of Rs. 534.05.
What Happened
Gujarat Mineral Development Corporation Ltd, engaged in mining, mineral processing, and power generation, with a particular focus on the exploration and commercialisation of mineral resources, is in the spotlight as the company’s shares have surged 12 percent in the day’s trade.
Government Tender for Rare Earth Magnet Manufacturing
The GMDC rally is driven by the Ministry of Heavy Industries’ global tender for setting up integrated sintered rare earth permanent magnet manufacturing facilities with a capacity of 6,000 MTPA, aimed at boosting domestic production of critical magnets for EVs and renewable energy.
The tender, issued through a two-stage Least Cost System on the CPP Portal (documents from 20 March 2026, bids due 28 May 2026), has created positive market sentiment among investors. Technical bids will open on 29 May 2026, and the scheme carries a financial outlay of Rs 7,280 crore and offers capital subsidy and sales‑linked incentives.
Volume spike
The stock has recorded a strong trading volume of 15.33 million shares in the day’s session, significantly higher than its average daily volume of around 4–6 million. This surge in volume indicates heightened investor interest and adds strength to the ongoing price movement, reinforcing the positive momentum in the stock.
Technical Overview
The stock is currently trading above its 50-day and 200-day moving averages, which indicates underlying strength in the trend. Additionally, the stock has been trading around a decent RSI level of 50 to 60, indicating a neutral momentum with room for potential upside, suggesting that the stock is neither overbought nor oversold and may continue its upward trend.
Financials
The company’s revenue declined by 11.37 percent from Rs. 653 crores in December 2024 to Rs. 579 crores in December 2025. Meanwhile, Net profit declined from Rs. 148 crores to Rs. 133 crores in the same period.
The company demonstrates strong financial health, with a ROCE of 14.1% and ROE of 10.9%, supported by a low debt-to-equity ratio of 0.04. It has consistently maintained a healthy dividend payout of 42.6%, reflecting stable profitability and shareholder returns.
Gujarat Mineral Development Corporation Limited (GMDC) is one of India’s leading state-owned mining enterprises and a Public Sector Undertaking of the Government of Gujarat. The Corporation operates five lignite mines across Kutch, South Gujarat, and the Bhavnagar region, supporting critical energy and industrial requirements. GMDC is recognised as the largest merchant seller of lignite in the country, with a strong track record of responsible mining and resource development.
Gujarat is endowed with rich deposits of important minerals. Minerals such as bauxite, fluorspar, manganese, silica sand, limestone, bentonite, and ball clay are abundant in the state and serve a wide range of industrial applications.
Bauxite is primarily used for aluminium extraction, while limestone, a form of calcium carbonate, is essential in cement manufacturing. Other minerals contribute to diverse industries, including the production of hydrofluoric acid, steel hardening and rust prevention, water purification, glass and ceramic manufacturing, and oil drilling, among others.
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. Trade Brains Technologies Private Limited 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.
The post Why did GMDC shares skyrockets 12% in todays trading session? appeared first on Trade Brains.