Power stock engaged in the business of Mining Iron Ore and Manufacturing Iron Ore Pellets, Sponge Iron, generation of Electricity and many more jumped 11 percent in the day’s trade, as the Board of Directors of the company are going to consider Buyback of Equity shares.
With a market capitalization of Rs. 14,270 Crores, the shares of Godawari Power & Ispat Limited were trading at Rs. 1,050 per equity, up 7.49 percent from its previous day’s close price of Rs. 974.90.
The Board of Directors of Godawari Power & Ispat Limited has scheduled a meeting on June 15, 2024, to consider a proposal for the buyback of fully paid-up equity shares of the Company of the face value of Rs. 5.
As per sources, Godawari Power and Ispat had earlier carried out a share buyback of the equity shares of the company last year for upto Rs. 250 Crores via the tender offer route. The board had given the nod to buy back 50 lakh equity shares of Rs. 5 each face value, accounting for 3.66 percent of the total equity shares and the buyback price was fixed as Rs. 500 per share.
Godawari Power & Ispat Limited is engaged in the business of Mining Iron Ore and Manufacturing Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire, and Ferro Alloys, along with the generation of Electricity. It has Captive Iron Ore Mines and manufacturing plants strategically located in Chhattisgarh.
It has a Strong Growth Plan to more than double the capacities of iron ore mining, pellets, and integrated steel plant to 6.7Mnt; 5.7MnT & 2.5MnT respectively. The Capacities of Sponge Iron and Steel Billets were increased to 0.594 MnT and 0.525 MnT in FY24.
There has been Improvement in Operating margin despite a decrease in iron ore mining, pellet production & sales realization of value-added products, higher production volumes of value-added products, low-cost solar energy, and operating leverage.
Its Revenue from Operations grew by 16.19 percent from Rs. 1,316.59 Crores in Q4FY23 to Rs. 1,529.81 Crores in Q4FY24, accompanied by profits of Rs. 169.54 Crores to Rs. 218.85 Crores.
In terms of Return Ratios, it has reported a return on equity (ROE) of 22.3 percent and a return on capital employed (ROCE) of 29.7 percent. It has debt to equity ratio of 0.01.
Written by: Bharath K.S
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