GMDC is a state PSU established by the Government of Gujarat. It is a leading mining company, producing lignite for power and electricity generation. As the second-largest producer of lignite in the country, it also extracts base metals and minerals such as bauxite, manganese, fluorspar, and limestone.

Additionally, GMDC is involved in power generation, catering to Gujarat’s energy requirements. The company operates two power projects in Kutch, each with a capacity of 125 MW, along with renewable energy units comprising wind and solar power.

Expansion Plans

GMDC has undertaken a massive expansion program for lignite, coal mining, and metal projects. It has been allocated several lignite mines by the Government of India and is increasing its lignite production capacity from 3 MTPA to 5 MTPA at its Surkha mining project in Gujarat. This expansion will help meet the power demands of industries in the state.

The company also owns two coal mines with estimated reserves of 1,600 million tons, offering significant revenue potential and long-term power security for Gujarat. Further, GMDC plans to commence coal mining in Odisha at the Baitarani West coal mine.

In metals mining, the company is venturing into copper mining in Gujarat with an initial investment of ₹900 crore.

Financial Performance

A glance at the company’s quarterly financial results highlights its strength:

Period	Revenue (₹ Cr.)	Net Profit (₹ Cr.)
June ’24	818	184.5
Sept ’24	593	129
Dec ’24	653	148.7
Equity	₹63.6 Cr.

Given the growing importance of lignite, coal mining, and power generation in India’s economy—along with favorable market trends—this stock could be a valuable addition to one’s portfolio. It currently has a P/E ratio of 12.6, indicating reasonable valuation.