The dip comes just a day after the stock touched a 10-month high, driven by renewed optimism around the company’s flagship Jonnagiri gold mining project in Andhra Pradesh.

The recent surge in Deccan Gold’s stock was sparked by positive developments in its long-awaited Jonnagiri project — touted to become India’s first private sector gold mine. The project is expected to commence production by the next fiscal year, with an estimated annual yield of 400 kg of gold. This would mark a significant milestone for India's gold mining sector, which has remained largely underdeveloped despite the country’s strong demand for the precious metal.

While investor enthusiasm pushed the stock to its recent peak, Monday’s pullback is seen as a natural correction after the rally. Analysts note that profit booking is typical after such strong upward momentum, especially in small-cap mining stocks that are highly sensitive to project news and commodity prices.

Despite the short-term dip, market watchers remain optimistic about Deccan Gold’s long-term prospects, particularly if the Jonnagiri project moves ahead as scheduled. The company is expected to benefit from India’s increasing focus on domestic mineral exploration and efforts to reduce dependence on gold imports.

Deccan Gold Mines continues to be one of the few publicly listed gold exploration companies in India, with a portfolio that includes exploration rights across several Indian states.