GMDCLTD - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Breakdown

Profitability

ROE: 11.0% and ROCE: 14.2% — solid returns, especially for a state-run mining company.

EPS: ₹21.0 — healthy earnings base, though quarterly PAT dipped from ₹225 Cr to ₹164 Cr (−11.1%).

Dividend Yield: 1.83% — attractive for long-term holders seeking income.

Balance Sheet & Leverage

Debt-to-Equity: 0.02 — virtually debt-free, a major strength in a cyclical sector.

Book Value: ₹200 — implies a P/B ratio of ~2.76, reasonable given profitability and asset base.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 26.2 Slightly above industry average (21.4) — fair valuation

PEG Ratio 1.71 Acceptable — growth is moderately priced

Intrinsic Value ~₹510–₹530 CMP is slightly above fair value zone

Valuation is fair, supported by strong fundamentals and low debt.

⛏️ Business Model & Competitive Edge

Sector: Mining — lignite, bauxite, fluorspar, manganese, silica sand, limestone, bentonite, and ball clay.

Strengths

State-backed operations with strategic resource access across Gujarat.

Expansion plans include opening three new lignite mines this fiscal year

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Strong operating leverage and consistent dividend payout.

FII and DII holdings slightly up — stable institutional sentiment.

Challenges

Profit contraction in recent quarter.

RSI at 68.7 — nearing overbought zone, suggesting short-term caution.

PEG ratio suggests growth expectations may be priced in.

📉 Technicals & Entry Zone

Current Price: ₹551

DMA 50: ₹453 | DMA 200: ₹382 — bullish trend intact

MACD: Strongly positive — momentum accelerating

📌 Suggested Entry Zone: ₹500–₹530

A dip near intrinsic value or 50 DMA would offer a better margin of safety.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, low debt, and strategic resource control make GMDC a solid long-term play.

Accumulate on dips: Ideal for investors seeking exposure to India’s industrial and energy-linked mining growth.

You can explore GMDC’s full financials and technical chart or review its stock overview and analyst sentiment for deeper insights

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