Shares of Gujarat Mineral Development Corp. have seen a significant surge of 20.98% in the past five sessions, making it the best-performing stock in the BSE PSU within this time period.
GMDC's shares hit a 52-week high of Rs 468 during the day on Tuesday before closing 5% higher at 457.8 apiece on the BSE.
Over the five sessions, the stock has risen 20.98%, which is significantly higher than any other counter in the BSE PSE Index. During this same period, the index itself has given a negative return of 0.75%.
To put things into perspective, the second-best five-day performer in the BSE PSU Index is KIOCL Ltd, which has given a return of 6.57%.
On a year-to-date basis, GMDC's shares have surged 43.54%, making it the third-best performer in the index, just behind Bharat Dynamics Ltd. (up 53.8%) and Garden Reach Shipbuilders & Engineers Ltd. (62.23%).
Why Is GMDC Buzzing?
GMDC's rapid surge comes on the back of media reports of the Union government proposing a Rs 1,345-crore scheme to ramp up domestic production of rare earth magnets after China curbed exports.
Rare earth magnets are crucial for production of electric vehicles, wind turbines, electronics and other applications.
GMDC stands to directly gain from the domestic opportunity, as India looks to steer away from China imports.
GMDC is developing one of the world's largest rare-earth deposits at Ambadungar, Gujarat, and is planning to establish a complete rare earth elements value chain.
The mining company is positioned for substantial growth by capitalising on the high demand and strategic importance of the REEs.
GMDC is not the only beneficiary of the rare earth opportunity, with the likes of Coal India, Hindustan Copper and Hindustan Zinc also securing key deals in the space recently.
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