Godawari Power & Ispat was at the day's high of Rs 77.80, up 4.01% at 10:12 IST on BSE on bargain hunting shrugging of a likely cancellation of buyback proposal that was approved on 27 October 2008.
The company made the announcement after market hours on Friday, 14 November 2008. The stock had lost 3.48% to Rs 74.80 on that day, ahead of the announcement.
The stock hit a low of Rs 72.50 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 63.25 on 27 October 2008.
The stock fell 16.28% in three straight sessions to Rs 74.80 on 14 November 2008 from Rs 89.35 10 November 2008, ahead of the announcement.
The small-cap metal producer has an equity capital of Rs 28.07 crore. Face value per share is Rs 10.
The current price of Rs 77.80 discounts its Q2 September 2008 annualised EPS of Rs 45.30, by a PE multiple of 1.71.
The company's decision to reconsider buyback has raised fears that it may cancel the buyback programme which it had announced on 27 October 2008. The board of Godawari Power had approved buying back minimum 3 lakh shares at maximum price of Rs 135 a share. The aggregate amount to be spent on buyback was set at Rs 36 crore, or 9.37% of the paid up capital and free reserves of the company as on 31 March 2008.
Godawari Power & Ispat's net profit rose 48.3% to Rs 31.79 crore on a 86.1% rise in sales to Rs 331.61 crore in Q2 September 2008 over Q2 September 2007.
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.
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