Share of Godawari Power has delivered 896% returns to its shareholders in one year. The stock, which closed at Rs 156.80 on June 15, 2020 rose to Rs 1561.95 on BSE today. An amount of Rs 1 lakh invested in Godawari Power stock a year ago would have turned into Rs 9.96 lakh today.
In comparison, Sensex has risen merely 58.95% during the period. The share hit all time high of Rs 1561.95 today. However, it fell 6.08% to Rs 1,411 on BSE. The share has fallen after seven days of gains.
Godawari Power share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the power firm stood at Rs 5,114 crore in afternoon session.
In a month, the share has gained 52.89%.
Number of FIIs holding stake in Godawari Power has risen from zero to 15 in March quarter of last fiscal.
The share of the Chhattisgarh-based power producer has outperformed its peers in last one year. JSW Steel share has risen 59% during the period. Share of another competitor Tata Steel has gained 283.74% in one year. SAIL share has added 371% since June 15 last year. Share of Hindalco Industries has managed to gain 169% during the period.
The strong rally in Godawari Power stock can be attributed to the robust financial performance of the firm.
The firm reported a phenomenal 879% rise in Q4 profit to Rs 326.95 crore against Rs 33.37 crore profit in the corresponding quarter of previous fiscal. Sales rose 59.77% to Rs 1,262.25 in last quarter against Rs 790 crore sales in Q4 of previous fiscal.
Operating profit excluding other income rose 214.73% to Rs 489.63 crore in Q4 against Rs 155.57 crore profit in same period of previous fiscal.
The stock has risen 63% in last 16 trading sessions after the firm announced its Q4 earnings on May 25. On May 25, the stock stood at Rs 958 on BSE.
On an annual basis, the firm reported a 282.77% rise in net profit at Rs 638.39 crore for fiscal ended March 2021 against Rs 166.78 crore profit in March 2020 fiscal. Net sales rose 23.82 % to Rs 4,071.92 crore in last fiscal against Rs 3,288 crore sales in the March 2020 fiscal.
Other developments have also pushed the share of Godawari Power higher in the past few months.
Recently, shareholders of the company cleared the plan for divestment of its shareholding in Godawari Green Energy (GGEL), a material subsidiary of the company which pushed the stock higher for seven consecutive sessions.
GGEL is a Special Purpose Vehicle (SPV) promoted by GPIL with an equity stake of 77.82 per cent on fully diluted basis.
On May 27, the board of company approved a proposal to set up of a captive solar PV power plant of 250 MW capacity in Raigarh District of Chhattisgarh at a cost of Rs 750 crore. The project shall be funded mainly out of internal accruals. The power generated in this project shall be captively consumed in the company's existing plant situated at Silatra Industrial Area, Raipur, Chhattisgarh.
On March 15, 2021 the company got approval from the Chhattisgarh Environment Conservation Board, Raipur for 'consent to operate' the enhanced capacity of iron ore pellet plant and consent to set up manufacturing facilities in other divisions. Since then, the share has risen over 150% .
Godawari Power and Ispat Limited is engaged in the business of manufacturing of iron ore pellets, sponge iron, steel billets, hard bright (H.B.) wires and generation of power. The company's segments include steel and electricity. The company is also end-to-end manufacturer of mild steel wires, Ferro alloys, captive power, wires rods, steel wires, oxygen gas and fly ash brick.
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