GMDC Stock Jumps 13% After Guiding For Four-Time Increase In Net Worth By 2028
The company emerged as the highest bidder for two coal mines in Odisha in an auction conducted by the Ministry of Coal.
Shares of Gujarat Mineral Development Corp. rose to their highest level in nearly 16 years after the company guided for a four-fold increase in net worth by 2027–2028,
The company emerged as the highest bidder for two coal mines in Odisha in an auction conducted by the Ministry of Coal, it said in its annual report.
It won the bids for Odisha's Burapahar block in Sundargarh district, which has a geological reserve of 548 million tonne, and the Baitarani (West) block in Angul district, with a geological reserve of 1,097 million tonne of coal.
GMDC plans to commission these mines over the next three years, with an expected investment in excess of Rs 5,000 crore in the next five to seven years.
"These two projects are projected to become our backbone. The net worth of GMDC, which currently stands (as of March 31, 2023) at Rs 5,759 crore, will increase by four times by 2027–28," stated the annual report released on Sept. 8.
Shares of Gujarat Mineral Development Corp. jumped 13.22%, its highest since Nov. 20, 2007, before paring gains to trade 10.4% higher at 2:18 p.m. This compares to a 0.65% rise in the NSE Nifty 50.
The average traded volume so far in the day stood at 2.21 times its monthly average, while the relative strength index was at 77, indicating that the stock may be overbought.
One analyst tracking the company maintains a 'sell' rating, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 47%.