Iron and steel products maker, Godawari Power & Ispat is trending for its announcement of double rewards in a mixture of splits and special dividends. Accordingly, this metal stock has been buzzing. The broader consensus on the stock is BUY. YTD, the stock zoomed by 45% on BSE.
Godawari Power & Ispat Share Price:
Currently, the stock trades at Rs 1,120.80 apiece on BSE with a market cap of Rs 14,995.74 crore. The stock is down by nearly 1%. The stock's 52-week high and low is at Rs 1,222.95 apiece and Rs 550.95 apiece respectively.
Godawari's PE ratio is at 15.83x, and the return on equity is strong at 22.42%.
Godawari Power & Ispat Stock Split:
This week, the company's board approved the proposal for the sub-division of equity shares of the face value of Rs 5/-each of the Company into 5 (Five) equity shares of Re 1/- each, subject to the approval of the Shareholders of the Company in ensuing Annual General Meeting.
Accordingly, the stock split ratio is 1:5. This will be the second stock split carried by Godawari Power in less than 4 years. Earlier, Godawari's first stock split was of 1:2 ratio which was carried on October 26, 2021.
Godawari Power & Ispat Dividend:
Further, Godawari's board has approved the proposal for payment of a Special Dividend of Rs 1.25/-(i.e. 25%) per equity share of Rs 5/-each on the entire paid-up share capital of the Company comprising 13,37,94,988 equity shares of the nominal value of Rs 5/-each on the occasion of 25th Anniversary of the Company.
The record date for the special dividend is fixed on August 17, 2024, and the of payment date is set on August 28, 2024. Godawari is already going to turn ex-dividend on August 16, 2024, for its final dividend payout of Rs 5 per share for FY24.
Both special and final dividends will be ex-dividend on August 16, since the record date of August 17 is on Saturday.
Together, the dividend payout will be of Rs 6.25 per share of 125% for FY24.
BUY/SELL Godawari Power & Ispat?
As per Trendlyne data, the consensus recommendation from 1 analyst for Godawari Power & Ispat Ltd. is STRONG BUY. EPS is expected to grow by 29.4% in FY25. The 1-year target price is Rs 1250 on Godawari Power, signalling a nearly 12% potential upside in the share ahead.
In Q1FY25, the company's consolidated Revenues from operations (Net of Trading Sales) increased by 12% to Rs. 1,342 crore on a YoY basis due to an increase in production, sales and realization of pellets. While consolidated EBITDA and PAT increased to Rs. 408 Cr. and Rs. 287 crore on YoY and QoQ basis respectively despite a fall in volumes & realization of finished products. This is primarily because of the cost savings benefits gained from last year's debottlenecking capital expenditures on commissioning solar power plants, new high-efficiency Turbine Generators and operational leverage.
Godawari Power & Ispat Limited is a fully integrated steel company that operates across the entire steel value chain. The Company's operations span from iron ore extraction from two captive iron ore mines to the production of iron ore pellets and high value steel products. It is a prominent player in the Indian steel industry, renowned for its integrated steel plants and robust manufacturing capabilities. With a strong focus on efficiency and sustainability, the company has carved a niche for itself in the market. Leveraging state-of-the-art technology and a skilled workforce, Godawari Power & Ispat Limited consistently delivers high-quality steel products that meet the diverse needs of its customers across various sectors.
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