GMDC shares surge 7% for third day on ₹7,280 crore rare earth magnet incentive

shares rose 7% to around ₹569–₹572, marking the third consecutive session of gains after the Union Cabinet approved a ₹7,280 crore scheme to boost India's domestic rare earth magnet production capacity to 6,000 metric tons annually over seven years. The program includes ₹750 crore capital subsidy and ₹6,450 crore sales-linked incentives for five integrated units of 1,200 tons each within three years, targeting self-reliance amid China's 90% global dominance and recent export curbs.​ Scheme and GMDC positioning GMDC, active in bauxite, rare earths, and lithium exploration, stands to gain from financial incentives, tax benefits, and expanded mining/processing amid rising demand for EVs, renewables, and defence.​ The stock has rallied ~38% in three months, trading at a P/E of 16.74 and P/B of 2.62, reflecting optimism on revenue potential despite India lacking a pure rare earth oxide play.​ Market reaction Broader mining peers like NMDC (+2%) and Orissa Minerals also gained, signaling sector tailwinds from policy push. Investors eye GMDC's execution in the incentive program for sustained momentum. Source: The Economic Times No Recommendations