Buy Gujarat Mineral Development Corporation, target price Rs 195: HDFC Securities
This will help the company to mitigate the risk of dependence on a single commodity and also improve the ESG rating of the company.
By ETMarkets.com | Updated:
Agencies
HDFC Securities has buy call on Gujarat Mineral Development Corporation with a target price of Rs 195. The current market price of Gujarat Mineral Development Corporation is Rs 135.85. Time period given by analyst is 2-3 Quarter when Gujarat Mineral Development Corporation price can reach defined target.
Gujarat Mineral Development Corporation, incorporated in the year 1963, is a Small Cap company (having a market cap of Rs 4315.26 Crore) operating in Mining sector.
Gujarat Mineral Development Corporation key Products/Revenue Segments include Lignite, Thermal Power, Renewable Energy System, Interest, Bauxite, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 911.98 Crore, up 54.19 % from last quarter Total Income of Rs 591.46 Crore and up 19.32 % from last year same quarter Total Income of Rs 764.29 Crore. Company has reported net profit after tax of Rs 265.61 Crore in latest quarter.
The company’s top management includes Mr.Raj Kumar, Mr.Nitin Shukla, Mr.S B Dangayach, Prof.Shailesh Gandhi, Mrs.Sonal Mishra, Mr.Milind Torwane, Mr.Roopwant Singh, Mr.Raj Kumar, Mrs.Gauri Kumar, Mr.Nitin Shukla, Mr.S B Dangayach, Prof.Shailesh Gandhi, Mrs.Sonal Mishra, Mr.Milind Torwane, Mr.Roopwant Singh, Mrs.Gauri Kumar. Company has S C Ajmera & Co. as its auditors. As on 31-12-2022, the company has a total of 32 Crore shares outstanding.
Management’s focus is to diversify the revenue base of the company from lignite and so the company plans to foray into manufacturing of rare-earth elements, and non-lignite businesses such as silica sand, Fluorspar, multi metal, and limestone for which it has roped in BCG for feasibility study. In the coming years, it aims to earn at least ~50% revenue from the non-lignite portfolio. This will help the company to mitigate the risk of dependence on a single commodity and also improve the ESG rating of the company.
Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.07 per cent, DIIs 1.72 per cent.
Gujarat Mineral Development Corporation, incorporated in the year 1963, is a Small Cap company (having a market cap of Rs 4315.26 Crore) operating in Mining sector.
Gujarat Mineral Development Corporation key Products/Revenue Segments include Lignite, Thermal Power, Renewable Energy System, Interest, Bauxite, Others for the year ending 31-Mar-2022.
Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 911.98 Crore, up 54.19 % from last quarter Total Income of Rs 591.46 Crore and up 19.32 % from last year same quarter Total Income of Rs 764.29 Crore. Company has reported net profit after tax of Rs 265.61 Crore in latest quarter.
The company’s top management includes Mr.Raj Kumar, Mr.Nitin Shukla, Mr.S B Dangayach, Prof.Shailesh Gandhi, Mrs.Sonal Mishra, Mr.Milind Torwane, Mr.Roopwant Singh, Mr.Raj Kumar, Mrs.Gauri Kumar, Mr.Nitin Shukla, Mr.S B Dangayach, Prof.Shailesh Gandhi, Mrs.Sonal Mishra, Mr.Milind Torwane, Mr.Roopwant Singh, Mrs.Gauri Kumar. Company has S C Ajmera & Co. as its auditors. As on 31-12-2022, the company has a total of 32 Crore shares outstanding.
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Investment RationaleManagement’s focus is to diversify the revenue base of the company from lignite and so the company plans to foray into manufacturing of rare-earth elements, and non-lignite businesses such as silica sand, Fluorspar, multi metal, and limestone for which it has roped in BCG for feasibility study. In the coming years, it aims to earn at least ~50% revenue from the non-lignite portfolio. This will help the company to mitigate the risk of dependence on a single commodity and also improve the ESG rating of the company.
Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of 31-Dec-2022, while FIIs owned 4.07 per cent, DIIs 1.72 per cent.
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