Top 5 Government's Critical Mineral Policy Stocks You Shouldn't Be Missing to Watch

In the recent union budget of FY 25, the Government of India has allocated ₹18,000 crore for its National Critical Mineral Mission. On top of that, additional ₹18,000 crore would be invested by the several other PSUs for the same. It would help for the better exploration & refinery of critical mineral for the mining companies of India. Here are the list of those 5 stocks: -

Let's us have a look on their revenues & profits of the year 2024: -

Note: - All the values are in crores.

Now let’s discuss best 5 stocks related to government's policy of national critical mineral mission (NCMM) : -

1. NMDC

The company is the major supplier of India's iron ore needs which are used to make still products. The company alone fulfills the entire country’s 20% iron ore production needs. The company targets to expand its iron ore production to 100 million MTPA by the FY 30 which is approximately 120% higher than its current production 45.1 million MTPA as of March 2024. It is also exploring other precious minerals such as diamonds & limestone.

As far as its revenues and earnings are concerned, NMDC has reported a revenue of ₹6,943 for the December quarter which is approximately 31.5% higher than the previous quarter. And the earning has also risen significantly up to ₹1.897 in December quarter which was only about₹1,196 in the previous one, which is huge jump of 58.62%.

2. Coal India Ltd

The company holds a strong monopoly in India's coal mining sector. The company operates 48% of India's coal resources & contributes to nearly about 78-80% of the country’s total coal production. The company collaborates with Indian Rare Earth (IREL) & BPCL for the purpose of developing critical mineral gas & coal –to-synthetic natural gas project respectively.

As far as its revenues and earnings are concerned, Coal India ltd has reported a revenue of ₹37,923 for the December quarter which is 17.86% higher than the preceding quarter. The earning has also risen drastically to ₹8,491 in December quarter which was only about ₹6,275 in the previous one, and it's a sharp jump of approximately 35.31%.

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3. Lloyds Metals & Energy Ltd

The company was established in 1977 and holds key expertise in both iron ore mining & its production along with power generation. The company mines iron ores & produce sponge iron with a capacity of 10 Million Metric Tonnes & 340,000 tons per annum respectively. The company utilizes its kilns waste heat for power generation by operating a 34 MW waste recovery-based power plant.

As far as its revenues and earnings are concerned, Lloyd Metals & energy Ltd has reported a revenue of ₹1,693 for the December quarter which is a significant growth of 15.17% higher than the previous one. The earnings have also improved significantly rises up to ₹389 in December quarter which was only about ₹301 in the previous one, which is a robust growth of 29.24%.

4. MOIL

The company was established in 1962 and is the largest producer of manganese ore capturing more than half of the India’s market in this field. The company holds strong monopoly and is the sole producer of electrolytic manganese dioxide in India. The company collaborates with Gujrat Mineral Development Corporation & Chhattisgarh Mineral Corporation for the purpose of exploring several mining resources. The company has planned a capex of ₹6,680 million by FY26 for enhancing its mining operations & production capacity.

As far as its revenues and earnings are concerned, MOIL has reported a revenue of ₹400 for the December quarter which is 25.39% higher than the previous one. And the earnings have also improved significantly rises to ₹64 in December quarter which was only about ₹50 in the previous one, a tremendous rise of 28%.

5.Hindustan Copper ltd

The company was established in 1967 and has control over the entire supply chain of copper from its mining to its finished goods production. The company has more than half of the entire country's copper resources indicating a strong monopoly in this segment.

As far as its revenues and earnings are concerned, Hindustan Coppers has reported a revenue of ₹344 for the December quarter which is a sharp decline of 38.49% higher than the previous quarter. And the earnings have also drastically declined to ₹63 in December quarter which was only about₹102 in the previous one, a major downfall of 38.24%

DISCLAIMER: we are not SEBI –registered, all the above information is for education purpose only, consult with your financial advisor or do your own research before investment.