GMDC Ltd.: Brokerage Nuvama Slashes Price Target by 59%, Maintains 'Reduce' Rating Amidst Lowered Estimates

Overview

Brokerage firm Nuvama has maintained its 'reduce' rating on Gujarat Mineral Development Corporation (GMDC) Ltd., setting a new price target of ₹231, which represents a potential 59% downside from current levels. Nuvama has reduced GMDC's EBITDA estimates for FY2026 and FY2027 by 10% and 15% respectively, citing expectations of lower lignite volume and higher costs. In the September quarter, GMDC reported an 11% decline in revenue and its EBITDA halved, with margins narrowing significantly.