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Gujarat Mineral Development Corporation continues its impressive streak of setting new records

10 October 20232 mins read by Angel One
The shares have seen a strong rally, climbing 175% in the past six months, with strong financials and dividend declarations serving as one of the key drivers.
Gujarat Mineral Development Corporation continues its impressive streak of setting new records
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Indian frontline indices opened the trading session with a substantial upward momentum, propelled by upbeat global indicators. Furthermore, Asian stock markets displayed resilience today, rebounding from recent losses attributed to the impact of the Israel-Palestine conflict. The broader indices significantly outperformed the primary indices.

Gujarat Mineral Development Corporation Ltd took the lead as the top gainer on the BSE Smallcap index, effectively maintaining the enthusiasm among small-cap investors. During Tuesday’s intraday trading session, shares of Gujarat Mineral Development Corporation Ltd experienced a remarkable surge, climbing nearly 14% and reaching a 52-week high of Rs 364.35 per share on the BSE.

The shares have witnessed a robust rally, soaring around 175% over the past six months, consistently achieving new record highs. One of the primary catalysts behind the rally was the substantial dividend payout (equivalent to 572% on the face value) that the company paid to eligible shareholders. This generous dividend payout generated significant buying interest in the company’s shares.

In terms of annual performance, the company reported a robust growth in net profit for FY23, with a remarkable growth of 173%, reaching Rs 1,213.29 crore compared to the previous year’s figure of Rs 444.42 crore. Additionally, net sales showed strong growth, rising by 28.16% to Rs 3,501.45 crore for the financial year ending in March 2023, as opposed to the previous year’s figure of Rs 2,732.08 crore. In contrast, the company encountered a substantial decline in both sales and net profit during the June quarter.

Gujarat Mineral Development Corporation Ltd (GMDC) stands as one of India’s leading players in the mining and mineral processing sector, ranking among the top five organizations in terms of market capitalisation within this industry. It holds the position of India’s second-largest producer of Lignite and supplies it to a range of thriving industries, including textiles, chemicals, ceramics, bricks, and captive power generation.

Keep a close eye on this stock for the upcoming trading sessions!

Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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