GMDC Stock Upgraded to 'Hold' by MarketsMOJO, Shows Promising Growth Potential

Gujarat Mineral Development Corporation (GMDC) has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on May 6, 2024. This midcap company in the mining and minerals industry has shown promising growth potential in the long term, with its operating profit growing at an annual rate of 35.03%.
The technical trend for GMDC has also improved, with the stock being in a bullish range and generating a return of -4.25% since May 3, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV have contributed to this bullish trend.

In the past year, GMDC has outperformed the market (BSE 500) with a return of 187.74%, while the market only saw a return of 35.52%. However, the company did face some negative results in December 2023, with a decline in net sales, PBT less OI, and PAT.

Despite its strong performance, GMDC currently has a very expensive valuation with a price to book value of 2.3 and a ROE of 17.4. This could be a concern for some investors as the stock is trading at a premium compared to its historical valuations.

It is also worth noting that domestic mutual funds hold only 0.12% of the company, which could indicate that they are either not comfortable with the current price or the business itself. However, as a midcap company, GMDC has shown potential for growth and could be a good addition to a well-diversified portfolio.