Expansion buzz energises Godawari Power

Expansion buzz energises Godawari Power

Godawari Power and Ispat rose 3.09% to Rs 247 at 11:35 IST on BSE, on reports the company plans a foray into commercial power generation projects..

Meanwhile, BSE Sensex was up 126.01 points or 0.71% to 17,776.58, as Asian stocks were mostly in green following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 7,859 shares were traded in the counter. The scrip had an average daily volume of 81,484 shares in the past one quarter.

The stock hit a high of Rs 253 and a low of Rs 245 so far during the day. The stock had a 52-week high of Rs 376.50 on 1 January 2008 and a 52-week low of Rs 92.40 on 7 March 2007.

The small-cap scrip had underperformed the market over the past one month till 25 February 2008, declining 9.70% compared to the Sensex’s decline of 3.87%. It had also underperformed the market in the past one quarter, declining 11.90% compared to Sensex’s decline of 7.72%.

The company’s current equity is Rs 28.07 crore. Face value per share is Rs 10.

The current price of Rs 247 discounts its Q3 December 2007 annualized EPS of Rs 38.31, by a PE multiple of 7.20.

As per reports, Godawari Power and Ispat (GPIL) is planning to set up projects in Chhattisgarh or Jharkhand with capacities ranging between 300 to 1,000 megawatt (MW) with coal and coal rejects as fuel.

Godawari Power and Ispat (GPIL)’s net profit rose 82% to Rs 23.79 crore on 74.6% growth in net sales to Rs 217.44 crore in Q3 December 2007 over Q3 December 2006.

The company is engaged in manufacturing steel intermediate products like sponge iron and ferro alloys and finished long steel products like billets, wire rods and mild steel wires, which find application in the construction and infrastructure sectors. The group operates in three segments namely steel, electricity and others.