Shares of Gujarat Mineral Development Corporation (GMDC) jumped 4.4% on Friday after India formally joined the Pax Silica, a US-led effort on artificial intelligence and supply chain security. According to reports from The Economic Times, the pact was signed on the sidelines of the Global AI Impact Summit being held in the national capital. The state-owned company develops Gujarat's mineral resources such as lignite, bauxite, coal and rare earth materials, while also maintaining a diversified energy portfolio comprising thermal, wind and solar power. Latest market data shows the stock has surged 13% in recent sessions, hitting a fresh 52-week high amid strong investor interest in India's strategic minerals push.
The partnership follows India's participation in the Critical Minerals Ministerial convened by US Secretary of State Marco Rubio earlier in February. As reported by The Economic Times, India's External Affairs Minister S Jaishankar attended the event. Jacob Helberg, United States Under Secretary of State for Economic Growth, Energy, and the Environment, hailed India joining the Pax Silica Declaration on Thursday, stating that India's entry underscores the importance of economic security translating into national security and stands against coercion and blackmail undermining the prosperity of nations.
Despite the positive market response, GMDC reported mixed financial results in its December quarter. According to The Economic Times, the Q3 consolidated net profit fell 10% year-on-year to ₹133 crore, while total revenue declined 11% YoY to ₹680 crore in the quarter under review. However, the company posted better than estimated EBITDA of ₹103 crore in Q3FY26 versus ₹86 crore estimated by the brokerage.
Nuvama Institutional Equities maintained a 'Reduce' stance on the stock for a target of ₹231 in its post-earnings review. As reported by The Economic Times, the brokerage noted that though the 250MW thermal power plant has restarted, higher initial operating costs kept the power segment in losses, with the thermal power plant likely to return to profits in FY27. The company has rewarded investors with multibagger returns, surging 119% in the past 12 months, largely due to potential benefits surrounding the rare earth story.
