Gujarat Mineral Development Corporation (GMDC) is embarking on a new beginning. This government-owned company is now venturing into the business of rare earth materials and critical minerals. This news has stirred the stock market, drawing investors' attention to the stock.
Last Friday, GMDC's shares saw a surge of nearly 15%. This jump came after news surfaced that the Prime Minister's Office (PMO) is soon to hold an important meeting regarding rare earth materials and their supply. The focus of this meeting is to make India self-reliant in the matter of rare earth and critical minerals.
Plans to Invest Up to ₹4000 Crore
GMDC's management has confirmed that the company will invest between ₹3000 to ₹4000 crore in the field of rare earth materials. This investment could not only change the company's direction but also prove strategically important for India.
Rare earth materials have become extremely important in today's world. They are used in electric vehicles, wind turbines, high-end electronics, and even defense equipment. In such a scenario, GMDC's entry into this sector is considered a significant step.
What is GMDC and its Role So Far?
GMDC is a government undertaking primarily engaged in lignite mining. It has mines in Gujarat and supplies lignite to various industries in the state. Its clients come from sectors such as textiles, ceramics, brick manufacturing, and captive power plants.
Now, GMDC plans to establish its presence in strategically important minerals like rare earth materials, in addition to traditional minerals.
Brokerage Firms Confident, Share Could Climb Up to 60%
Brokerage firms have taken GMDC's new move quite seriously. Ventura Securities, a brokerage firm, has shown a positive outlook on the company's shares in its report.
The report states that a major technical breakout is being observed in GMDC's shares, and it could see tremendous growth in the long term. Ventura has set a target price of ₹700 for this share, while it is currently trading around ₹435.
If this target is achieved, investors could benefit by approximately 60 percent.
90 Percent Recovery in the Last Four Months
GMDC's recent performance has been nothing short of a rocket. In March 2023, the share price was around ₹123. After that, it touched an all-time high of ₹505 in February 2024.
However, a period of profit booking started in the market after this, and the share slipped to ₹226 in March 2025. But in the past four months, it has shown a tremendous recovery again and registered a jump of more than 90 percent.
Will India Challenge China's Dominance?
When it comes to rare earth materials worldwide, China currently holds a dominant position. China controls approximately 49 percent of the world's rare earth reserves and 69 percent of mining. Furthermore, 90 percent of the refining process also takes place in China.
In such a scenario, countries like India are dependent on China for the supply of these minerals. Looking at GMDC's new plan, it is a strategic opportunity for India to strengthen its supply chain.
Increased Discussion Regarding Rare Earth Mining in India
For some time now, the central government has also become alert regarding critical and rare earth minerals. Recently, news has surfaced about the PMO's preparation for a review meeting on this issue. It will discuss the availability, mining, and refining of these minerals in the country.
The central government's plan is to make India self-reliant in this sector and develop such resources that can become India's strength in the technical and defense sectors in the future.
New Opportunities May Open Up in the Coming Days
While GMDC's announcement has increased enthusiasm among investors, it could also pave the way for other public and private companies to enter the field of rare earth materials.
India also has some reserves of rare earth minerals, which are currently being used on a limited scale. A major change is expected in this after the government's policy and companies' initiatives.
