Shares of Godawari Power & Ispat Ltd (GPIL), a prominent player in the steel industry, have witnessed a decline in the past six months. Despite hitting an all-time high of Rs 253.60 on December 12, 2024, the stock has dropped 14% in eight sessions. Over six months, it is down 4%, trailing the Sensex’s 1.75% gain. However, experts maintain a bullish outlook for the stock.
Key Stock Performance
- Current Price: Rs 216.55 (1.03% increase in today’s session).
- Market Capitalization: Rs 14,486 crore.
- 52-Week High/Low: Rs 253.60 / Rs 131.60.
- 1-Year Gain: 53%.
- 2-Year Gain: 244.24%.
- Beta: 0.7 (indicating low volatility).
In today’s trading session, the stock opened higher at Rs 220 and recorded a turnover of Rs 1.16 crore with 0.54 lakh shares traded.
Technical Analysis
- Relative Strength Index (RSI): 52.5, indicating the stock is neither overbought nor oversold.
- Moving Averages:
- Above: 20-day, 50-day, 100-day, 200-day.
- Below: 5-day, 10-day.
These indicators highlight a cautious market sentiment in the short term, although long-term prospects remain promising.
Analysts’ Take
YES Securities has maintained a BUY rating on Godawari Power with a revised target price of Rs 284 per share, up from Rs 275. Key drivers for this projection include:
- CAGR Projections (FY25E–27E):
- Revenue: 17%
- EBITDA: 25%
- PAT: 14%
- EBITDA Margin: Estimated to improve from 6.3% (FY24) to 7.5%, supported by capacity expansions and operational efficiency.
- Valuation: 6x FY27E EV/EBITDA.
Strategic Moves
In December 2024, GPIL acquired a 51% stake in Jammu Pigments Ltd (JPL) for Rs 255 crore. This move marks GPIL’s entry into the non-ferrous metal recycling sector, which is expected to witness significant growth due to the increasing focus on sustainability and resource optimization.
About Godawari Power & Ispat Ltd
Godawari Power operates in the following key sectors:
- Steel Production
- Electricity Generation
- Mining
The company caters to both domestic and export markets, making it a diversified and resilient player in the steel and power industries.
Key Data
| Parameter | Details |
|---|---|
| Current Price | Rs 216.55 |
| 52-Week High | Rs 253.60 |
| 52-Week Low | Rs 131.60 |
| Market Capitalization | Rs 14,486 crore |
| RSI | 52.5 |
| Analyst Target Price | Rs 284 |
| Strategic Acquisition | 51% stake in Jammu Pigments Ltd |
Conclusion
While Godawari Power faces short-term headwinds, its long-term growth story remains intact, fueled by strategic acquisitions, improved operational metrics, and robust fundamentals. Investors looking for steady returns should closely monitor its developments and technical trends.
Disclaimer
The information provided in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Always consult with a professional before making investment decisions.
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