GMDCLTD - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.8

🧾 Financial Health & Performance

EPS (₹20.9) with quarterly PAT of ₹164 Cr — decent bottom-line, though profit has dropped QoQ (-11%).

ROE (11%) & ROCE (14.2%) — solid efficiency levels, above average for mining and minerals peers.

Debt-to-Equity (0.02) — virtually debt-free, offering flexibility during commodity cycles.

Dividend Yield (2.32%) — adds income potential for long-term holders.

Financial structure is healthy, but earnings fluctuation and growth stability need monitoring.

📈 Valuation Snapshot

Metric Value Insight

P/E Ratio 19.6 Reasonable, slightly above industry average (18.8)

P/B Ratio ~2.03 Fair for a cash-rich, low-debt company

PEG Ratio 1.27 Acceptable — valuation aligns with growth expectations

Intrinsic Value — Estimated range: ₹385–₹400 — near fair value

Priced moderately — not undervalued, but entry possible if momentum sustains.

⛏️ Business Model & Strategic Edge

Segment: Mining and mineral exploration — lignite, bauxite, fluorspar, etc.

Strengths

Government backing — stable access to mining licenses and land.

Asset-light balance sheet — extremely low debt and strong reserves.

Challenges

Commodity-dependent — prices and demand fluctuations affect profitability.

Quarterly profit dip may stem from lower output or pricing weakness.

Modest institutional inflows — FII ↑ 0.10%, DII ↑ 0.03%

📉 Technical Outlook & Entry Strategy

Current Price: ₹411

DMA 50 / DMA 200: ₹392 / ₹351 — stock trading above moving averages

RSI (50.8): Neutral — no clear momentum bias

MACD (10.7): Bullish — suggests continuation of uptrend

Volume trend: Below average — watch for breakout confirmation

🛒 Suggested Entry Zone: ₹385–₹400 Use dips for accumulation, ideally after a slight pullback toward support levels.

⏳ Long-Term Holding View

Suitable for portfolios seeking exposure to India’s mining infrastructure push.

Expect valuation expansion if quarterly earnings rebound and ROE rises above 13%.

Use dividend and cyclical upswings to harvest gains — ideal for medium-risk, value-oriented investors.

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