1. At a Glance
Once famous for its lignite… now trying everything from rare earths to solar power to stay relevant. Gujarat Mineral Development Corporation (GMDC) posted ₹733 Cr in Q1 revenue and ₹164 Cr PAT — down from its ₹1,200 Cr glory quarters. It’s got cash, limestone contracts, and 40-year deals, but is this miner still worth mining?
2. Introduction with Hook
GMDC is that PSU relative who once made a fortune in coal and now claims to be “into renewables and critical minerals.” It’s trying to reinvent itself like a 90s actor in an OTT web series. Revenue growth is sluggish, but dividend yield is a meaty 2.2%. Also, they signed two 40-year limestone supply deals this year.
Highlights:
- PAT down 33% YoY
- Revenue ₹733 Cr, OPM 23% (was 38% just last year)
- Market cap: ₹13,822 Cr
- PE: 20.8x
The business may be earthy, but the stock’s expectations are sky-high.
3. Business Model (WTF Do They Even Do?)
GMDC is Gujarat’s mining mafia — the legal kind.
Core Biz:
- Mining of lignite, bauxite, manganese, fluorspar, ball clay, and even rare earth minerals
- Has its fingers in power, wind, and solar projects for good measure
Recent Ventures:
- Cement-linked limestone supplies (hello, 40-year contracts)
- Power biz mostly chilling
- Rare earths = future bet, if it ever materializes
Tagline: Dig dirt, sell it, and call it sustainable.
4. Financials Overview
| Metric | FY23 | FY24 | FY25 TTM |
|---|---|---|---|
| Revenue (₹ Cr) | 3,498 | 2,463 | 2,851 |
| EBITDA (₹ Cr) | 1,337 | 626 | 637 |
| Net Profit (₹ Cr) | 1,204 | 617 | 666 |
| EPS (₹) | 37.88 | 19.41 | 20.92 |
| Dividend Yield | 3.1% | 2.2% | 2.2% |
Commentary:
They made ₹1,204 Cr in FY23. Now, they’re crawling back with less than ₹700 Cr TTM. PSU energy, PSU volatility, PSU dividend = full combo meal.
5. Valuation
Current price: ₹434
Book value: ₹202
P/E: 20.8x
P/BV: 2.15x
Fair Value Range: ₹350 – ₹420 (based on 16–18x earnings)
Still holding at premium for a cyclical business. Unless rare earths explode, this pricing feels like it’s high on silica fumes.
6. What’s Cooking – News, Triggers, Drama
- 2x 40-Year Limestone Deals: One with JK Cement, another with City Gold Pipes
- Rare Earths Foray: Ambadongar project could be India’s rare earth savior
- Coal Project Delays: Baitarni-West mine facing timeline issues
- Capex Alert: ₹13,000 Cr planned till 2030 — PSU trying its best startup cosplay
- IT Security Incident: Data safe, just some miner mischief
Basically, GMDC is doing everything but starting an EV company — and we’re only halfway through the fiscal.
7. Balance Sheet
| FY | Equity | Reserves | Borrowings | Net Worth | Total Assets |
|---|---|---|---|---|---|
| FY23 | ₹64 Cr | ₹5,722 Cr | ₹2 Cr | ₹5,786 Cr | ₹6,953 Cr |
| FY25 | ₹64 Cr | ₹6,348 Cr | ₹126 Cr | ₹6,412 Cr | ₹7,750 Cr |
Minimal debt. Solid PSU balance sheet. Like the Maruti 800 of corporate finance — may not be fancy, but it works.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹933 Cr | -₹787 Cr | -₹137 Cr | ₹8 Cr |
| FY24 | ₹109 Cr | ₹238 Cr | -₹365 Cr | -₹18 Cr |
| FY25 | ₹1,059 Cr | -₹808 Cr | -₹183 Cr | ₹68 Cr |
Cash flow from ops rebounded hard in FY25 — great! But investing outflows show the capex spree is real.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 TTM |
|---|---|---|---|
| ROCE | 31% | 14% | 14% |
| ROE | 26% | 11% | 11% |
| OPM | 38% | 25% | 22% |
| P/E | 11x | 20.8x | 20.8x |
| Dividend Payout | 30% | 47% | 42% |
ROCE was 🔥. Now it’s… warm. Margins melting faster than arctic ice.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹3,498 Cr | ₹1,337 Cr | ₹1,204 Cr |
| FY24 | ₹2,463 Cr | ₹626 Cr | ₹617 Cr |
| FY25 TTM | ₹2,851 Cr | ₹637 Cr | ₹666 Cr |
PAT halved from FY23, and revenue still struggling to cross ₹3,000 Cr again. But hey, at least they aren’t bleeding.
11. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROCE |
|---|---|---|---|---|
| NMDC | 23,905 | 6,532 | 9.6 | 29.6% |
| GMDC | 2,851 | 666 | 20.8 | 14.2% |
| MOIL | 1,585 | 382 | 20 | 19.1% |
| Gravita India | 3,869 | 312 | 44 | 21.6% |
Looks like the PSU cousin who’s trying to be cool — but still borrows the car from NMDC.
12. Miscellaneous – Shareholding, Promoters
Promoter Holding: Rock solid at 74%
FIIs: Barely hanging in at 2.25%
DIIs: Microscopic — under 1%
Public: ~23%, because retail loves a PSU dividend play
Shareholders: Down from 2.5L to 2.27L in the past 2 quarters — not exactly confidence-inspiring
13. EduInvesting Verdict™
GMDC is a curious PSU — one eye on the past (coal), one foot in the future (rare earths), and both hands deep in limestone. With falling profits, margin pressure, and a capex-fueled transformation plan, this is a “watch it, don’t worship it” type story.
More mineral than magical. Solid for dividends, shaky for growth thrills.
Written by EduInvesting Team | 25 July 2025
Tags: GMDC, PSU, Lignite, Rare Earth, Limestone Contracts, Dividend Stocks, EduInvesting Premium, Q1 FY26 Analysis
