{"id":8227,"date":"2022-04-28T14:00:47","date_gmt":"2022-04-28T08:30:47","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8227"},"modified":"2022-04-28T14:00:48","modified_gmt":"2022-04-28T08:30:48","slug":"gmdc-multibagger-stock","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/gmdc-multibagger-stock\/","title":{"rendered":"GMDC: Multibagger Stock Has Potential Upside As Per Edelweiss"},"content":{"rendered":"\n<p>Domestic brokerage and research firm Edelweiss has maintained its buy recommendation on <a href=\"https:\/\/www.tickertape.in\/stocks\/gujarat-mineral-development-corporation-GMDC?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">GMDC (Given that Gujarat Mineral Development Corporation Limited)<\/a> with a revised target price of Rs 260 (earlier Rs 245).<\/p>\n\n\n\n<p>Given that GMDC&#8217;s existing businesses \u2013 lignite and power \u2013 are stabilising, the management is now focused on new revenue streams.&nbsp;<\/p>\n\n\n\n<p>GMDC is an Indian mining and mineral processing company that has given <a href=\"https:\/\/blog.tickertape.in\/what-are-multibagger-stocks\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">multibagger returns<\/a> of over 167% in 2022 and about 243% in a year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Earnings sneak peek<\/strong><\/h2>\n\n\n\n<p>For Q4 FY 2022, GMDC reported an <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/?utm_source=blog&amp;utm_medium=article\">EBITDA<\/a> of Rs 4.1 bn. (up 12.6x y-o-y), beat Edelweiss\u2019 estimate.<\/p>\n\n\n\n<p>The brokerage highlighted, \u201cKey points: i) Blended realisation is up 92% YoY to \u20b93,931\/t. ii) Bhavnagar and Mata No Madh mines are key volume drivers. iii) One-time tax expense of \u20b91.34 bn on account of the shift to a new tax regime. iv) Surplus cash of \u20b97 bn deposited with GSFS&#8221;.<\/p>\n\n\n\n<p>Edelweiss projects <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-ebitda\/\">EBITDA<\/a> to hover between Rs 12 bn. and Rs 13 bn. annually, thanks to higher lignite prices and a ramp-up in volume. The stock prices would also benefit from fructifying additional revenue streams, including bauxite, base metals, and fluorspar.<\/p>\n\n\n\n<p>\u201cWe are surprised by the series of price hikes taken by the management since August 2021, taking advantage of the higher price of substitutes. Furthermore, the volume ramp up is also evident. Besides, the company has appointed consultants to look at opportunities beyond lignite,&#8221; Edelweiss added.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Potential upside<\/strong><\/h2>\n\n\n\n<p>All in all, the brokerage house believes that GMDC stock price has a potential upside owing to the following reasons:<\/p>\n\n\n\n<ol><li>Global coal prices will remain robust in the medium term due to the ongoing Russia-Ukraine tensions<\/li><li>The management expects the discount on substitutes to narrow down going ahead<\/li><li>The other streams of revenue look promising<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>GMDC, a metal stock, has rallied over 167% in 2022 and about 243% in a year. Edelweiss discusses why it is bullish on the stock.<\/p>\n","protected":false},"author":27,"featured_media":8228,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[1592,269],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/02.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8227"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=8227"}],"version-history":[{"count":1,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8227\/revisions"}],"predecessor-version":[{"id":8229,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8227\/revisions\/8229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8228"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=8227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=8227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=8227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}