21 Sep 2009, 0227 hrs IST, Santanu Mishra, ET Bureau
The upsurge in stock markets saw the prices of many frontline metal stocks more than treble in the past nine months. However, quite a few stocks in the small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
small-cap space have failed to fire the street. Godawari Power & Ispat (GPIL) is one such case which suffered badly in early 2009 from lower steel prices and economic slowdown. However, the commissioning of its long-pending iron-ore mines and pelletisation plant in current fiscal, along with the surge in spot iron-ore prices, is expected to boost earnings significantly.
The stock looks undervalued and provides upside potential in the near term. Investors looking to invest in small-cap metal space may consider this stock with an investment horizon of around two years.
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