If you want to invest in the stock market for the short term, then the brokerage firm has selected State PSU for you. The name of this PSU is GMDC i.e. Gujarat Minerals Development Corporation (NSE: GMDCLTD).
It is the most renowned mining and processing company in the world. This year, this PSU stock has yielded returns of about 180 percent. The stock closed at 407 rupees (GMDC share price).
GMDC The Share Price Target
A top brokerage has advised to purchase GMDC Shares for three months. The share is currently priced at 407 rupees.
The brokerage has recommended buying within the Rs 405-415 range. The price target was set for Rs.495. This is over 20 percent higher than the closing.
The investment outlook is set to run for 3 months. GMDC is the top mineral processing firm. It is the second-largest producer of lignin in the nation.
The company also investigates silica-rich land, bauxite, bentonite, limestone clay, manganese, and other clays. It is a Gujarat state government-owned company.
Normal Production Is Expected To Resume This Fiscal Year
The brokerage noted in its report that Covid’s production will be in the normal range for FY24. The company has not made any capital expenditures during the past two years as a result of COVID-19.
There is now a plan to spend Rs 25 crore to fund mining acquisitions and land development. There is a plan to invest an investment of Rs 5000 crore over the next 5 to 7 years.
GMDC Share Price The Past
The stock has been performing extremely well in 2023. On January 2nd, 2023 the share was trading at Rs 149.
On December 4th the price reached Rs 450, which is the highest amount. The minimum that this company had was 123 on March 28.
This year, the stock has returned a total in the range of 180 percent to those who invested.
About Gujarat Mineral Development
Gujarat Mineral Development Corporation Limited (GMDC) is a mining company. The company was founded in India in Ahmedabad in 1963.
GMDC is a zero-debt company. The company has ranked 486th in India’s Fortune 500 Companies for 2022 and is one of the top five mining companies based on capitalization.
GMDC is India’s second-largest lignite producer, focusing on lignite supply and exploration in deposit-rich areas.
It provides a variety of industries with lignite, including textiles, chemicals, and ceramics. It also explores other minerals, such as bauxite and fluorspar.
It is a major energy player with a portfolio of renewable and thermal projects such as solar and wind. GMDC generated over 2,522,416 MWh of green energy in the past year.
Fundamental Analysis of Gujarat Mineral Development
| Market Cap | ₹ 12,943 Cr. |
| Current Price | ₹ 407 |
| 52-wk High | ₹ 450 |
| 52-wk Low | ₹ 123 |
| Stock P/E | 12.8 |
| Book Value | ₹ 183 |
| Dividend | 2.81 % |
| ROCE | 31.3 % |
| ROE | 22.9 % |
| Face Value | ₹ 2.00 |
| P/B Value | 2.22 |
| OPM | 35.0 % |
| EPS | ₹ 31.8 |
| Debt | ₹ 0.52 Cr. |
| Debt to Equity | 0.00 |
Gujarat Mineral Development Shareholding Pattern
| Promoters Holding | |
| Sept 2022 | 74.00% |
| Dec 2022 | 74.00% |
| Mar 2023 | 74.00% |
| June 2023 | 74.00% |
| Sept 2023 | 74.00% |
| FII Holding | |
| Sept 2022 | 3.67% |
| Dec 2022 | 4.07% |
| Mar 2023 | 3.82% |
| June 2023 | 3.08% |
| Sept 2023 | 1.89% |
| DII Holding | |
| Sept 2022 | 1.93% |
| Dec 2022 | 1.72% |
| Mar 2023 | 1.65% |
| June 2023 | 1.51% |
| Sept 2023 | 1.00% |
| Govt. Holding | |
| Sept 2022 | 0.00% |
| Dec 2022 | 0.00% |
| Mar 2023 | 0.00% |
| June 2023 | 0.00% |
| Sept 2023 | 0.00% |
| Public Holding | |
| Sept 2022 | 20.40% |
| Dec 2022 | 20.15% |
| Mar 2023 | 20.54% |
| June 2023 | 21.41% |
| Sept 2023 | 23.09% |
Gujarat Mineral Development Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 1,880 Cr |
| 2020 | ₹ 1,449 Cr |
| 2021 | ₹ 1,329 Cr |
| 2022 | ₹ 2,732 Cr |
| 2023 | ₹ 2,956 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 220 Cr |
| 2020 | ₹ 146 Cr |
| 2021 | ₹ -36 Cr |
| 2022 | ₹ 446 Cr |
| 2023 | ₹ 1,013 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0 |
| 2020 | 0 |
| 2021 | 0 |
| 2022 | 0 |
| 2023 | 0 |
Last 10 Years’ Profit Growth:
| 10 Years: | 7% |
| 5 Years: | 29% |
| 3 Years: | 103% |
| Current Year: | 17% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 11% |
| 5 Years: | 11% |
| 3 Years: | 15% |
| Last Year: | 23% |
Sales Growth Over 10 Years:
| 10 Years: | 8% |
| 5 Years: | 11% |
| 3 Years: | 34% |
| Current Year: | -15% |
Company’s Positive Signs:
- The company is almost debt-free
- In the past five years, the company has seen a healthy profit growth of 28.5% CAGR.
- The number of days that a debtor is in default has risen from 29.0 days to 19.7.
- The working capital requirements of the company have decreased from 197 days to 149.
Company’s Negative Signs:
- The earnings include Rs 437 crores of other income.
Conclusion
This article is a complete guide about Gujarat Mineral Development Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
If you are new to our website and want to get all the latest updates related to the stock market, join us on Telegram Group.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.
Also Read: 2800% Huge Return! ₹113 Missile Manufacturing Defence Share; First Target ₹226
Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.
