Rs 41 to Rs 1,070: This steel stock turned into a multibagger in five years; reclaimed Rs 1,000 mark after 19 days 

Multibagger stock: Shares of multibagger Godawari Power & Ispat have delivered 2,565% returns to investors in the last five years. The stock of the steel producing major, which closed at Rs 40.73 on September 23, 2019 hit an intraday high of Rs 1070 in the current session. In comparison, Sensex has risen 119% in five years. In the current session, Godawari Power stock reclaimed the Rs 1,000 mark after 19 trading sessions. The stock opened higher at Rs 994 against the previous close of Rs 988.60 on BSE. The stock rose 8.23% intraday to Rs 1,070 on BSE. 

The shares of the steel and power manufacturer’s stock has gained 76% in a year and risen 36.42% in 2024. Total 1.53 lakh shares of the firm changed hands amounting to a turnover of Rs 16.06 crore in the current session. Market cap of the firm climbed to Rs 14,089 crore. The stock fell to a 52-week low of Rs 573.45 on October 26, 2203 and scaled a record high of Rs 1222.95 on July 16, 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 56.6, signaling it's trading neither in the overbought nor in the oversold zone. Godawari Power shares stand higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Brokerage Monarch NetWorth Capital has assigned a price target of Rs 1,240. It has a buy call on the multibagger stock. 

"Even after accounting for a correction in our commodity price estimates, we find that GPIL is attractively trading at 5x Jun’26 EV/EBITDA which drives our high conviction BUY rating. We value GPIL at 6x Jun’26 EV/EBITDA to arrive at a price target of Rs 1240/share and initiate with BUY. The six 6 times multiple is a decade average valuation, showing our cautious stance to account for commodity price corrections, the brokerage said. It cited risks such as severe commodity down-cycle and delay in expansion projects to its bullish assumptions.

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.