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.
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gmdc q2 not analysed