Shares of Godawari Power & Ispat Ltd (GPIL) have turned negative in the last six months. The stock of the steel producing major is down 4% during the period. In comparison, Sensex has risen 1.75% in six months. The multibagger stock, which hit its record high of Rs 253.60 on December 12 this year, is down 14% in eight sessions.
In the current session, Godawari Power stock rose 1.03% to Rs 216.55 against the previous close of Rs 214.35 on BSE. The stock opened higher at Rs 220.
The shares of the steel and power manufacturer’s stock have gained 53% in a year and risen 244.24% in two years. Total 0.54 lakh shares of the firm changed hands amounting to a turnover of Rs 1.16 crore in the current session. Market cap of the firm climbed to Rs 14,486 crore.
The stock fell to a 52-week low of Rs 131.60 on March 20, 2024. Godawari Power shares have a beta of 0.7, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of the stock stands at 52.5, signaling it's trading neither in the overbought nor in the oversold zone. Godawari Power shares are trading higher than the 20 day, 50 day, 100 day, 200 day but lower than the 5 day and 10 day moving averages.
YES Securities has assigned a price target of Rs 284 per share.
"Based on our preliminary analysis of Jammu Pigments Ltd (JPL) acquisition by GPIL, we project a CAGR of 17%/25%/14% in Revenue/EBITDA/PAT for JPL during FY25E–27E period. These projections are underpinned by our assumption of EBITDA margins improving from 6.3% in FY24 to 7.5%, driven by debottlenecking initiatives to enhance product yield and ongoing capacity expansions. Additionally, we have assumed a steady utilization rate of 30% (vs 27% in FY24) throughout the forecast period. We rollover our estimates for GPIL to FY27E and continue to maintain a BUY rating on the stock. We value GPIL at 6x FY27E EV/EBITDA to arrive at our revised target price of Rs 284/share (Earlier Rs 275 per share), " said YES Securities.
In the beginning of this month,Godawari Power & Ispat Ltd (GPIL) announced the acquisition of a 51% stake in Jammu Pigments Ltd (JPL) for a consideration of Rs 255 crore. The strategic move marks GPIL's entry into the non-ferrous metal recycling sector, a market with significant growth potential driven by the increasing focus on sustainability and resource optimisation.
About the Company
Godawari Power is a steel company which operates through two segments: Steel and Electricity. Its geographic segments include domestic market and export market. The company is engaged in iron and steel industry, power sector and mining sector.