Buy Godawari Power; target of Rs 170: Firstcall Research

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Firstcall Research report on Godawari Power & Ispat “Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., formally Ispat Godawari Ltd (IGL), belonging to HIRA Group of Industries, Raipur. GPIL was incorporated in 1999 to set up an integrated steel plant with captive power generation. GPIL is a listed company with the National Stock Exchange and Bombay Stock Exchange. GPIL is a flagship Company of Raipur-based Hira Group of Industries having dominant presence in the long product segment of the Steel industry, mainly into mild steel wire. Today, GPIL is an end-to-end manufacturer of mild steel wires. In the process, the company manufactures sponge iron, billets, Ferro alloys, captive power, wires rods (through subsidiary company), steel wires, Oxygen gas, fly ash brick and last but not the least iron ore pellets. GPIL is also awarded rights for Iron Ore and Coal Mining for captive consumption, as a result of which, the company has managed to traverse the entire value chain (raw material to final product) in steel wires and now become a fully integrated steel manufacturer. GPIL has come a long way since it started its operation in Raipur, Chhattisgarh as a sponge iron manufacturer in the year 2001. Over the last few years, the company has scaled up its capacity five fold and has become one of the largest players in the mild steel wires segment. GPIL has also become one of the pioneers in the field of IRON ORE PELLETIZATION, having installed a Pellet Plant of 1.80 MTPA capacity and successfully operating it at 100% rated capacity. Not only has the company increased its scale during the aforesaid period, it has also moved up the value chain.” “At the current market price of Rs.149.50, the stock P/E ratio is at 5.15 x FY15E and 3.96 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 29.01 and Rs. 37.71 respectively. Net Sales and Operating Profit of the company are expected to grow at a CAGR of 4% and 14% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 5.21 x for FY15E and 4.67x for FY16E. Price to Book Value of the stock is expected to be at 0.57 x and 0.50 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.170.00 for Medium to Long term investment,” says Firstcall Research report. 

Read More