Shares of Gujarat Mineral Improvement Company (GMDC) moved increased by 15 per cent to Rs 107.70, which can also be its 52-week excessive on the BSE in Friday’s intra-day commerce on the again of heavy volumes. The inventory of the state-owned coal firm surpassed its earlier excessive of Rs 94.70 touched on Thursday.
At 01:51 pm, GMDC was buying and selling 14 per cent increased at Rs 106.05, as in comparison with a 0.13 per cent decline within the S&P BSE Sensex. The buying and selling volumes on the counter jumped almost five-fold with a mixed 25.93 million shares, representing 8 per cent of complete fairness of the corporate, having modified palms on the NSE and BSE.
Up to now one week, the inventory has zoomed 44 per cent, on expectation of enchancment of firm’s efficiency, primarily as a result of worth hikes taken within the lignite division. Compared, the S&P BSE Sensex was up 2.35 per cent throughout the week.
GMDC at present has 5 operational lignite mines. The mines are situated in Kutch, South Gujarat and Bhavnagar area. GMDC’s 5 lively lignite mines collectively produced 60.04 lakh metric tonnes (mt) of lignite throughout the FY 2020-21.It’s the largest service provider vendor of lignite within the nation.
Aside from lignite, additionally it is working Bauxite mines in Gujarat. GMDC Energy Division consists of ATPS thermal energy plant, wind energy vegetation and solar energy vegetation. A complete 723.93 million items of energy was produced within the monetary 12 months 2020-21 (FY21).
GMDC in its FY21 annual report stated that within the coming years, coal manufacturing within the nation is more likely to obtain a lift as the federal government plans to switch nation’s captive mining coverage in coal and iron ore with an open bidding one.
As 5 mining leases are reserved by central authorities to GMDC, it’s going to enhance the lignite manufacturing, which is able to assist in growing income of the corporate. There are great amount of reserves of limestone on the firm’s upcoming Lakhpat Punrajpur Mining, Panandhro Extension & Bharkandam. It’s also approaching numerous cement firms throughout India for organising of cement plant the place it will likely be a long run limestone provider, the corporate stated.
Going forward, analysts at Edelweiss Securities count on important worth help as the corporate has taken hikes of 25–30 per cent on common in lignite. Nonetheless, variable bills are additionally anticipated to extend owing to increased value of diesel. All in all, we understand the risk-reward as balanced, the brokerage had stated in a November 2021 report.
“We count on lignite gross sales to choose up from H2FY22, leading to FY22 lignite offtake at 8.4mt—a lot decrease than the FY19 degree of 9.2mt, however considerably increased than the previous two years’ common of 6.5mt. That stated, we count on the latest worth hike of 25– 30 per cent taken throughout mines to spur earnings”, it stated.