Multibagger metal stock rises as YES Securities sees 31% upside, check details 

Shares of Godawari Power rose 2% today after brokerage YES Securities initiated coverage on the multibagger stock with a buy rating. It sees 31% upside to the stock with a target of Rs 1390. The stock is already up 116% in a year and gained 319% in two years. Godawari Power stock hit an intraday high of Rs 1,088.20 against the previous close of Rs 1063.55 on BSE. Market cap of the iron and steel producer climbed to Rs 14,673 crore on Friday. Earlier, the stock opened lower at Rs 1056.90. 

The stock of the company rose to a 52-week high of Rs 1179.95 on June 18, 2024 and a 52-week low of Rs 505.05 on June 30, 2023. 

The share belonging to steel and power manufacturer has gained 113% in a year and risen 34.64% this year. Total 7,692 shares of the firm changed hands amounting to a turnover of Rs 82.98 lakh in the current session. Market cap of the firm climbed to Rs 14,673 crore. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 57.1, signaling it's trading neither in the overbought nor in the oversold zone. Godawari Power shares have a beta of 0.6, indicating average volatility in a year.

Godawari Power shares are trading higher than the 20 day, 50 day, 100 day, 200 day but lower than the 5 day and 10 day moving averages.   

YES Securities said, "Following its expansions in the mining and pelletization activities, Godawari Power will be strategically positioning itself to advance forward by aiming to become an integrated steel producer. The first step in this direction is the development of the 2.0 mtpa integrated HRC plant. The project is anticipated to be finished between September 2027 and March 2028. We believe that by establishing this HRC plant, GPIL will be able to fully utilize its backward integrated capabilities to enhance its market position as one of the most cost-effective steel producers in the country."

"We value GPIL at 6.5x FY26E EV/EBITDA to arrive at our target price of Rs 1,390/share," said the brokerage. 

In the March quarter of last fiscal, Godawari Power reported a 29.4% year-on-year (YoY) jump in net profit at Rs 219.5 crore against a net profit of Rs 169.6 crore in Q4 of the previous fiscal. Revenue from operations climbed 16.2% to Rs 1,529.8 crore in Q4 against Rs 1,316.6 crore in the year-ago period. At the operating level, EBITDA climbed 19.3% to Rs 328.9 crore in the fourth quarter of this fiscal over Rs 275.8 crore in fourth quarter of FY23.

About the Company     
Godawari Power is a steel company which operates through two segments: Steel and Electricity. Its geographic segments include domestic market and export market. The company is engaged in iron and steel industry, power sector and mining sector.