Godawari Power & Ispat shares jump 9% today; here's why

Shares of Godawari Power & Ispat Ltd rose sharply in Wednesday's trade. The stock surged 8.69 per cent to hit a day high of Rs 822.10. At this price, the scrip was down 2.66 per cent from its one-year high value of Rs 844.55, a level seen earlier this year on February 8. Despite the said drop, the multibagger counter has gained 132.89 per cent compared to its 52-week low price of Rs 353, hit on May 2, 2023.

Today's sharp upward move in the share price came after the company informed that it has resumed operations with full capacity at its Chhattisgarh plant.

"With reference to our earlier announcement dated dated 05.08.2023 vide which we had informed that fire occurred at 8 MW Bio Mass Power Plant namely Balaji Power A unit of Hira Ferro Alloys Limited (A Subsidiary of the Company) Plant located at Village Belsonda District Mahasmund Chhattisgarh on 04.08.2023. We wish to inform you that the said Plant has resumed its operation w.e.f. 27.03.2024 under trial run and resumed its operations with full capacity w.e.f. 08.04.2024," it stated.

"We are in receipt of above said information from Hira Ferro Alloys Limited on 09.04.2024," the company added.

Separately, Godawari Power announced that its extra-ordinary general meeting (HGM) will be held on May 4, 2024.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 66.65. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 11.13. Earnings per share (EPS) stood at 17.39.

Around 56,000 shares changed hands on BSE at the time of writing this story. The figure was higher than the two-week average volume of 28,000 shares. Turnover on the counter came at Rs 4.51 crore, commanding a market capitalisation (m-cap) of Rs 11,032.62 crore.