Brokerage firm Nuvama has maintained its "reduce" rating on state-run mining company GMDC Ltd. for a price target of ₹231 in its latest note. The price target implies a potential downside of 59% from Monday's closing levels.

Nuvama has cut GMDC's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates for financial year 2026 and 2027 by 10% and 15% respectively to factor in lower lignite volume and higher cost.

Adjusted for a one-time gain, GMDC would have reported a net loss in the September quarter. Its revenue also declined by 11% during the quarter compared to last year, while its EBITDA halved. EBITDA margin narrowed to 13.2% from 24% in the year-ago quarter.

The thermal power plant which became operational during the September quarter is only likely to ramp

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