Godawari Power & Ispat Ltd (GPIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Welspun Corp

Technocraf.Inds.

Jayaswal Neco

Shyam Metalics

Usha Martin

APL Apollo Tubes

Jindal Saw

Mah. Seamless

Ratnamani Metals

Godawari Power

Gallantt Ispat L

Why is Godawari Power & Ispat Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -6.86% of over the last 5 years

Negative results in Jun 26

INTEREST(Latest six months) At Rs 39.78 cr has Grown at 67.42%
ROCE(HY) Lowest at 18.80%
OPERATING PROFIT TO INTEREST (Q) Lowest at 16.42 times

With ROE of 14.3, it has a Very Expensive valuation with a 2.9 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.17%, its profits have risen by 10.7% ; the PEG ratio of the company is 2

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Godawari Power for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Godawari Power

-1.26%

-0.04

36.20%

Sensex

-4.54%

-0.34

13.39%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.14%

EBIT Growth (5y)

-6.86%

EBIT to Interest (avg)

25.73

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.25

Tax Ratio

27.21%

Dividend Payout Ratio

16.99%

Pledged Shares

Institutional Holding

9.10%

ROCE (avg)

34.50%

ROE (avg)

23.42%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.89

EV to EBIT

14.58

EV to EBITDA

12.45

EV to Capital Employed

3.17

EV to Sales

2.71

PEG Ratio

2.00

Dividend Yield

0.41%

ROCE (Latest)

21.68%

ROE (Latest)

14.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

NET SALES(Latest six months)

At Rs 3,360.74 cr has Grown at 20.40%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,144.59 cr

-12What is not working for the Company

INTEREST(Latest six months)

At Rs 39.78 cr has Grown at 67.42%

ROCE(HY)

Lowest at 18.80%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 16.42 times

DEBT-EQUITY RATIO(HY)

Highest at 0.08 times

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Here's what is working for Godawari Power

Net Sales - Quarterly

Highest at Rs 1,750.47 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,750.47 cr has Grown at 30.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,345.16 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,144.59 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Godawari Power

Interest - Latest six months

At Rs 39.78 cr has Grown at 67.42%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 16.42 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio - Half Yearly

Highest at 0.08 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 33.28 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income