⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GMDCLTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | GMDCLTD | Market Cap | 17,880 Cr. | Current Price | 562 ₹ | High / Low | 651 ₹ |
| Stock P/E | 27.7 | Book Value | 210 ₹ | Dividend Yield | 1.80 % | ROCE | 14.2 % |
| ROE | 11.0 % | Face Value | 2.00 ₹ | DMA 50 | 559 ₹ | DMA 200 | 510 ₹ |
| Chg in FII Hold | -1.02 % | Chg in DII Hold | 0.10 % | PAT Qtr | 135 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 51.0 | MACD | -6.74 | Volume | 29,68,104 | Avg Vol 1Wk | 28,49,624 |
| Low price | 251 ₹ | High price | 651 ₹ | PEG Ratio | 1.81 | Debt to equity | 0.04 |
| 52w Index | 77.7 % | Qtr Profit Var | -9.12 % | EPS | 31.3 ₹ | Industry PE | 16.6 |
📊 Core Financials
- Quarterly PAT rose from ₹120 Cr. to ₹135 Cr., showing sequential growth.
- ROCE at 14.2% and ROE at 11.0% → moderate efficiency compared to peers.
- Debt-to-equity ratio of 0.04 → virtually debt-free.
- Cash flows supported by mining operations, though cyclical in nature.
💹 Valuation Indicators
- P/E Ratio: 27.7 vs Industry PE of 16.6 → trading at a premium.
- P/B Ratio: ~2.68x (₹562 / ₹210) → moderate valuation.
- PEG Ratio: 1.81 → indicates moderately expensive valuation relative to growth.
- Intrinsic Value: Current price slightly above fair zone, reflecting optimism in mining demand.
🏢 Business Model & Competitive Advantage
- Mining company with strong presence in lignite and minerals.
- Government-backed operations provide stability and scale advantage.
- Exposure to commodity cycles and demand fluctuations affects earnings predictability.
📈 Technical & Entry Zone
- Current Price: ₹562, near 50 DMA (₹559) and above 200 DMA (₹510).
- RSI: 51.0 → neutral zone.
- MACD: -6.74 → mild bearish momentum.
- Entry Zone: Attractive accumulation between ₹530–₹550.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given sector demand growth.
✅ Positive
- Low debt levels (0.04 debt-to-equity).
- Dividend yield of 1.80% provides steady income.
- DII holdings increased by 0.10%, showing institutional support.
⚠️ Limitation
- High P/E ratio compared to industry average.
- Quarterly profit variation (-9.12%) raises concerns.
- ROE and ROCE below industry leaders.
📉 Company Negative News
- Decline in FII holdings (-1.02%).
- Stock corrected from 52-week high of ₹651.
📈 Company Positive News
- EPS of ₹31.3 reflects profitability despite cyclical pressures.
- Sequential PAT growth shows resilience.
🏭 Industry
- Mining sector supported by infrastructure demand and energy needs.
- Industry PE at 16.6 indicates moderate investor confidence.
🔎 Conclusion
GMDCLTD is a mining company with government backing, low debt, and stable operations.
Despite premium valuations and modest efficiency metrics, its fundamentals remain steady.
Best accumulated around ₹530–₹550 for investors with a 3–5 year horizon, while monitoring profit sustainability and commodity cycles.