Shares of Godawari Power and Ispat have given tremendous returns in the last one year. The stock surged nearly 900 percent from its 52-week low of Rs 153, hit on June 18, 2020, to around Rs 1,500 currently. In comparison, Sensex has risen 59 percent during the same period.
An amount of Rs 10,000 invested in Godawari Power stock a year ago would have turned into nearly a lakh today. The stock hit an all-time high of Rs 1,561.95 on June 15, 2021, and a 52-week low of Rs 153 on June 18, 2020. In the last month, it has gained nearly 55 percent.
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The strong rally in Godawari Power stock is mainly on the back of robust financial performance and a rise in investor confidence. The number of FIIs holding a stake in Godawari Power has risen from zero to 15 in the March quarter of last fiscal.
The firm reported a phenomenal 879 percent rise in its Q4 net profit to Rs 326.95 crore as against Rs 33.37 crore profit in the corresponding quarter of the previous fiscal. Sales also rose 60 percent to Rs 1,262.25 in Q4 versus Rs 790 crore sales in the year-ago quarter.
Operating profit excluding other income surged 215 percent to Rs 489.63 crore in Q4 versus Rs 155.57 crore profit in the same period of the previous fiscal.
In the last one year, the Chhattisgarh-based power producer's stock has outperformed its peers. While JSW Steel's stock has surged 60 percent, Tata Steel has increased its stock by nearly 285 percent in a year. At the same time, SAIL rallied 371 percent, Hindalco Industries' stock has increased by 170 percent.
The company's shareholders recently approved a plan to divest its interest in Godawari Green Energy (GGEL), a major subsidiary, causing the stock to rise 18 percent during that session.
On May 27, the company's board of directors authorised a proposal to build a captive solar PV power plant with a capacity of 250 MW in the Raigarh district of Chhattisgarh for Rs 750 crore. The project will be mostly supported by internal accruals. The electricity generated by this project would be used exclusively in the company's existing plant at Chhattisgarh.
On March 15, 2021, the company got consent to operate the enhanced capacity of iron ore pellet plant and consent to set up manufacturing facilities in other divisions by the Chhattisgarh Environment Conservation Board, Raipur. Since then, the stock has soared over 150 percent.
Godawari Power and Ispat Limited is engaged in the business of manufacturing iron ore pellets, sponge iron, steel billets, hard bright (H.B.) wires, and generation of power. The company's segments include steel and electricity.
First Published: IST