GMDC being the No.1 PSU of Gujrat has some major positives-
1.Rapid growth of Sales - From 600cr last year it is expected to do about 1000cr this year (already done 400cr in six months). EPS has jumped more than 500%. According to chairman , he sees company doing 10000cr sales in few years (can we take his word, sure, seeing the previous growth pattern, I see it doing 10000cr by 2010 so that would be a 1000% jump from the current year, imagine where the valuation of the stock can go)
2.There could be major positives for the mining companies in the recent to be announced mining policy.
3.In the next five years GMDC is aiming to become a 5,000-MW capacity generator in association with both private players and State public sector units. This would involve an investment of around Rs 25,000 crore.
Will keep updating this space.
Regards
jnj