Shares of Gujarat Mineral Development Corporation (GMDC) surged over 14% on Friday to strike a 52-week high, driven by news of a most likely conference by the Prime Ministers Office (PMO) to talk about the rare-earth magnet crisis.The stock saw significant volumes, with over 3 crore shares changing hands on the NSE around 2:50 pm.
The overall traded worth stood at over Rs 1,269 crore.Over 90% of global rare earth processing and production is controlled by China, and new export restrictions by the country have actually raised issues for the domestic EV industry.Quoting sources, CNBC-TV18 reported that the PMO is expected to hold a high-level meeting to address the escalating supply crisis in unusual earth magnets.In May, a leading Indian two-wheeler OEM warned of prospective production disturbances starting as early as July due to magnet shortages.
ET Auto included that this is not a hypothetical crisisit is currently impacting shipment timelines and making schedules.Live EventsIndia holds the worlds fifth-largest rare earth reserves but processes practically none locally.
Until recently, importing ended up magnets from China was the only feasible alternative, the report noted.The smallcap stock has actually acquired 33% year-to-date, surpassing the Nifty (up 5%) and the Sensex (up simply over 4%) during the very same period.GMDC, Indias leading mining and mineral processing business, is the top merchant seller of lignite and the second-largest producer of lignite in the country.With a market capitalization of Rs 13,674 crore, GMDC has seen a sharp recovery from its 52-week low of Rs 226.59 on March 3.
For the March quarter, GMDC reported a consolidated net earnings of Rs 226 crore, a 9.2% rise from Rs 207 crore a year earlier.
Profits stood at Rs 904 crore, up 10% from Rs 822 crore in the matching quarter last year.According to Trendlyne, GMDC shares are trading above their 50-day and 200-day simple moving averages of Rs 379 and Rs 330, respectively.(Disclaimer: Recommendations, ideas, views and opinions given by the specialists are their own.
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