GMDC stock gets ‘outperform’ rating

Credit Suisse has initiated coverage on Gujarat Mineral and Development Corporation (GMDC) stock with ‘outperform’ and a target price of Rs 210 citing valuation gap versus peers and strong operations.

An undervalued stock with strong volume growth,no overhang and good operations is hard to come by in the metals and mining space,and we believe GMDC fulfils all the criteria,said Credit Suisse.

One can argue that sales at regulated prices are much higher for Coal India than for GMDC. However,with GMDC’s prices at 50 percent lower than import parity,a 40 percent multiple discount to