Monday, November 24, 2008

Godawari Power slides to 52-week low on cancellation of buyback

Godawari Power & Ispat tumbled 7.90% to Rs 60 at 12:54 IST on BSE, after the company decided to cancell a proposal of buyback shares to conserve cash.
The stock hit a high of Rs 66.10 so far during the day. The stock hit a low of Rs 59.10 so far during the day, which is 52-week low for the counter. The stock hit a 52-week high of Rs 376.50 on 1 January 2008.
The company's current equity is Rs 28.07 crore. Face value per share is Rs 10.
The current price of Rs 60 discounts the company's Q2 September 2008 annualized EPS of Rs 45.30, by a PE multiple of 1.32.
Earlier, on 27 October 2008, the company's had board approved buying back a minimum three lakh shares at maximum price of Rs 135 a share.
The company has also decided to sell surplus power in open market in view of attractive price realization and better margins
The company also decided a temporarily cut down production of steel billets and ferro alloys until further decision in this regard. The other divisions sponge iron, power generation, wire drawing will continue to function normally, the company said.
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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