The shares of Godawari Power and Ispat Limited surged 19.31% during early trades on Monday to reach an intraday high of ₹ 325.00 apiece.
The company’s shares rose after the Government scrapped a recently imposed export duty on steel and allied raw materials. This will pave the way for more overseas shipments of steel from India and higher domestic prices.
Domestic steel makers made representation to the finance ministry recently, expressing concern over losing out on overseas customers due to the export taxes.
The Government had levied an export duty of 15% on most key grades of steel and 40-45% export duty on raw materials like iron ore and iron ore pellets in May this year. However, it scrapped the duty on Saturday to keep input prices under check for small businesses.
This comes at a time when India’s steel exports dipped 66 per cent in October to 360,000 tonnes from 1.05 million tonnes in October 2021.
Tracking the positive development in the industry, many shares were in the green. NMDC was quoting 3.78% higher, KIOCL rose 7.17%, Jindal Stainless was up 7.89%, at 12:08 PM on Monday, while Godawari Power and Ispat Ltd was trading at ₹ 310.85, up 14.12%, at 12:08 PM on Monday.
Godawari Power and Ispat Ltd shares have delivered multibagger returns of 271.28% in the past five years. Its share price increased from ₹83.63 to the current levels. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares five years ago, the value of their holdings would have been ₹ 3.71 lakhs today.
The company mines iron ore and manufactures iron ore pellets, sponge iron, steel billets, wire rods, H.B. wire and ferroalloys with the generation of electricity.
Written by Simran Bafna
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