Shares of Gujarat Mineral Development Corporation (GMDC) jumped nearly 17% on Friday, reaching a record high of ₹442.50. The sudden rise came after media reports said the Prime Minister’s Office (PMO) may hold a high-level meeting to discuss the rare-earth magnet crisis.
GMDC is a government-owned mining company based in Ahmedabad, Gujarat. It is known for mining minerals and lignite (a type of coal). The company has shown interest in rare earth elements, which are important for making permanent magnets used in electric vehicles (EVs), wind turbines, and electronics.
In May 2025, GMDC had announced plans to invest ₹3,000–₹4,000 crore in critical minerals, including rare earths. Although the company hasn’t shared detailed plans yet, it sees this move as a future growth opportunity.
The recent stock rally was supported by high trading volumes, signaling strong investor interest. Experts say the stock is technically strong, but it’s also in an overbought zone, meaning it may be priced too high in the short term.
Osho Krishan, Senior Analyst at Angel One, said the stock is showing strength and has support levels around ₹404–₹418. If it stays above ₹450, it could go up further to around ₹480.
AR Ramachandran, a SEBI-registered analyst, agreed the stock is looking strong on charts but warned that a drop below ₹406 could push the price down to ₹375. He advised investors to consider booking profits at current levels.
Jigar S Patel, from Anand Rathi, said support is near ₹410 and resistance around ₹440. He sees the stock trading between ₹400 and ₹450 in the near term.
In short, GMDC’s share price is rising due to expectations of the company entering the rare earth space, which is key for the EV and clean energy sectors. However, analysts suggest caution due to technical indicators and the stock’s recent sharp rally. Investors are advised to watch key support and resistance levels closely.
Also Read: Asian Stocks Mixed as Trade Tensions Rise
