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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532734 | NSE: GPIL

Godawari Power & Ispat Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:15 pm

Market Cap 12,226 Cr.
Current Price 183
High / Low245/129
Stock P/E13.7
Book Value 67.7
Dividend Yield0.55 %
ROCE29.2 %
ROE21.9 %
Face Value 1.00
PEG Ratio1.37

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Godawari Power & Ispat Ltd

Competitors of Godawari Power & Ispat Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Chennai Ferrous Industries Ltd 47.9 Cr. 133175/10310.9 1410.00 %10.2 %5.85 % 10.0
Bihar Sponge Iron Ltd 137 Cr. 15.226.8/9.5012.8 5.610.00 %11.0 %% 10.0
Ashirwad Steels & Industries Ltd 42.3 Cr. 33.867.6/31.516.4 65.70.00 %4.08 %2.84 % 10.0
Vaswani Industries Ltd 143 Cr. 48.273.9/23.013.9 42.20.00 %13.3 %7.76 % 10.0
Sarda Energy & Minerals Ltd 14,564 Cr. 414525/18024.4 1680.24 %15.3 %14.1 % 1.00
Industry Average17,412.00 Cr318.6029.13109.680.09%20.20%19.92%7.55

All Competitor Stocks of Godawari Power & Ispat Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,1601,2741,6071,4381,6661,3071,4631,3171,3261,2911,3091,5301,342
Expenses5578381,1141,0411,2061,0721,2801,0411,0199309781,201935
Operating Profit602436493397461235183276307361331329408
OPM %52%34%31%28%28%18%13%21%23%28%25%22%30%
Other Income1-1017124162641144426174132
Interest191212141018141010162414
Depreciation33333427283133323435353738
Profit before tax552382463493445221174243307343296310387
Tax %25%24%25%20%26%24%26%30%25%25%23%29%26%
Net Profit437292346392327169128170231257229219287
EPS in Rs30.8421.0423.3128.8423.2111.969.1012.0316.9918.8916.8616.0621.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,3552,1132,3841,9761,7992,5063,2943,2703,9495,3975,7455,4555,472
Expenses2,0241,7662,0261,7591,5081,9092,5052,6462,8123,5294,6124,1274,043
Operating Profit3313483582182915977906241,1371,8681,1341,3281,429
OPM %14%16%15%11%16%24%24%19%29%35%20%24%26%
Other Income151560141669-34817593129117
Interest12116522425225926325321211520206064
Depreciation71105118126120132133137109105124141145
Profit before tax1549277-147-732084142739621,9181,0831,2561,336
Tax %-3%24%8%-32%1%-3%37%35%32%24%27%26%
Net Profit1586971-100-742152611776551,467793936992
EPS in Rs11.364.425.05-6.77-5.2814.7317.8811.8345.28104.0656.2968.8972.89
Dividend Payout %6%14%5%0%0%0%0%0%10%12%7%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-56.33%2.90%-240.85%26.00%390.54%21.40%-32.18%270.06%123.97%-45.94%18.03%
Change in YoY Net Profit Growth (%)0.00%59.23%-243.74%266.85%364.54%-369.15%-53.58%302.24%-146.09%-169.91%63.98%

Godawari Power & Ispat Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:11%
3 Years:11%
TTM:1%
Compounded Profit Growth
10 Years:32%
5 Years:30%
3 Years:13%
TTM:14%
Stock Price CAGR
10 Years:38%
5 Years:87%
3 Years:51%
1 Year:39%
Return on Equity
10 Years:24%
5 Years:29%
3 Years:30%
Last Year:22%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333332343434343466656261
Reserves7458318927636638891,1351,3442,0013,2463,8414,4344,466
Borrowings1,6842,0842,0382,0072,2142,1241,8861,6978964283175234
Other Liabilities6555667866133424054564075421,149937998844
Total Liabilities3,1163,5143,7483,4153,2533,4523,5113,4823,4744,8905,1595,5455,405
Fixed Assets1,0702,3282,4032,2892,3262,2642,2492,2692,0131,5302,0652,3622,424
CWIP1,190137187238136171130137137643443433427
Investments185167114108131132123277239242222217
Other Assets8399981,0917746838851,0009511,0462,4782,4102,5282,338
Total Assets3,1163,5143,7483,4153,2533,4523,5113,4823,4744,8905,1595,5455,405

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +32156551377154515505519691,3309621,044
Cash from Investing Activity +-982-276-268-614-121-66-150-62-1,095-220-754
Cash from Financing Activity +644213-279-374-21-354-491-401-900-233-246-679
Net Cash Flow-18-74-28-24-7-062496-388

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow330.00346.00356.00216.00289.00595.00789.00623.00-895.00-427.00-316.00-51.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days171824182323172025241914
Inventory Days831191041109811212311210013388111
Days Payable83771201194042403638815765
Cash Conversion Cycle1760898193999687765060
Working Capital Days326125-277959636863665356
ROCE %13%9%8%3%6%15%21%15%34%54%27%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.50%67.50%67.50%67.50%67.50%67.50%67.50%67.68%63.26%63.26%63.26%63.26%
FIIs1.53%1.93%1.90%2.01%2.53%3.01%3.39%3.64%4.66%5.41%5.54%7.50%
DIIs0.39%0.39%0.16%0.36%0.47%0.75%1.06%1.11%1.52%2.09%2.08%1.96%
Public30.57%30.18%30.43%30.12%29.49%28.73%28.05%27.57%30.56%29.23%29.12%27.27%
No. of Shareholders68,49889,70980,36493,17198,10589,4461,11,91382,41684,17087,01394,6761,69,934

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Bandhan Small Cap Fund386,5870.6543.411832024-11-20211149.73%
DSP Natural Resources and New Energy Fund275,8852.4130.981832024-11-20150656.83%
Samco Flexi Cap Fund230,7983.7825.921832024-11-20126019.13%
Nippon India Nifty Smallcap 250 Index Fund48,4210.325.441832024-11-2026359.56%
Samco ELSS Tax Saver Fund30,0002.813.371832024-11-2016293.44%
Motilal Oswal Nifty Smallcap 250 Index Fund22,0940.312.481832024-11-2011973.22%
Motilal Oswal Nifty 500 Index Fund5,4370.030.611832024-11-202871.04%
Motilal Oswal Quant Fund3,7451.380.421832024-11-201946.45%
Motilal Oswal Nifty Smallcap 250 ETF1,2530.320.141832024-11-20584.7%
Motilal Oswal Nifty 500 ETF1830.030.021832024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.0010.0010.00
Basic EPS (Rs.)74.9961.16111.41181.1747.33
Diluted EPS (Rs.)74.4361.16111.41181.1747.33
Cash EPS (Rs.)85.2770.33114.46223.6691.27
Book Value[Excl.RevalReserv]/Share (Rs.)365.12304.22261.47617.98440.49
Book Value[Incl.RevalReserv]/Share (Rs.)365.12304.22261.47617.98440.49
Revenue From Operations / Share (Rs.)437.39443.48410.131193.72964.06
PBDIT / Share (Rs.)114.3395.34143.84361.44184.37
PBIT / Share (Rs.)103.0085.81135.88320.86144.24
PBT / Share (Rs.)99.6283.11141.89275.7379.09
Net Profit / Share (Rs.)73.9460.81106.51183.0751.13
NP After MI And SOA / Share (Rs.)74.9961.16111.41187.1548.89
PBDIT Margin (%)26.1321.4935.0730.2719.12
PBIT Margin (%)23.5419.3533.1326.8714.96
PBT Margin (%)22.7718.7334.5923.098.20
Net Profit Margin (%)16.9013.7125.9615.335.30
NP After MI And SOA Margin (%)17.1413.7927.1615.675.07
Return on Networth / Equity (%)20.8020.3144.2731.3612.58
Return on Capital Employeed (%)26.7626.4348.9435.7116.25
Return On Assets (%)16.8615.3729.9918.374.79
Long Term Debt / Equity (X)0.000.000.000.371.11
Total Debt / Equity (X)0.010.080.120.411.23
Asset Turnover Ratio (%)1.021.111.311.160.90
Current Ratio (X)3.232.451.932.512.06
Quick Ratio (X)2.021.601.221.280.82
Inventory Turnover Ratio (X)3.293.583.433.182.85
Dividend Payout Ratio (NP) (%)5.5214.374.440.000.00
Dividend Payout Ratio (CP) (%)4.8012.444.140.000.00
Earning Retention Ratio (%)94.4885.6395.560.000.00
Cash Earning Retention Ratio (%)95.2087.5695.860.000.00
Interest Coverage Ratio (X)23.9160.6296.188.012.97
Interest Coverage Ratio (Post Tax) (X)16.1740.3967.955.061.87
Enterprise Value (Cr.)8697.764080.335071.013315.712127.41
EV / Net Operating Revenue (X)1.590.700.930.810.64
EV / EBITDA (X)6.103.302.682.693.38
MarketCap / Net Operating Revenue (X)1.730.780.940.600.10
Retention Ratios (%)94.4785.6295.550.000.00
Price / BV (X)2.101.161.541.200.26
Price / Net Operating Revenue (X)1.730.780.940.600.10
EarningsYield0.090.170.280.260.47

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Godawari Power & Ispat Ltd as of November 23, 2024 is: 204.24

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Godawari Power & Ispat Ltd is Undervalued by 11.61% compared to the current share price 183.00

Intrinsic Value of Godawari Power & Ispat Ltd as of November 23, 2024 is: 224.64

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Godawari Power & Ispat Ltd is Undervalued by 22.75% compared to the current share price 183.00

Last 5 Year EPS CAGR: 9.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.50%, which is a positive sign.
  2. The company has higher reserves (1,942.31 cr) compared to borrowings (1,343.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.00 cr) and profit (151.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 49.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 61.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Godawari Power & Ispat Ltd:
    1. Net Profit Margin: 16.9%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 26.76% (Industry Average ROCE: 18.36%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.8% (Industry Average ROE: 14.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 16.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.02
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13.7 (Industry average Stock P/E: 23.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.01
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Godawari Power & Ispat Ltd. is a Public Limited Listed company incorporated on 21/09/1999 and has its registered office in the State of Chattisgarh, India. Company’s Corporate Identification Number(CIN) is L27106CT1999PLC013756 and registration number is 013756. Currently company belongs to the Industry of Steel - Sponge Iron. Company’s Total Operating Revenue is Rs. 5074.60 Cr. and Equity Capital is Rs. 68.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Sponge IronPlot No. 428/2, Phase I, Raipur District Chattisgarh 493111yarra.rao@hiragroup.com
http://www.godawaripowerispat.com
Management
NamePosition Held
Mr. B L AgrawalChairman & Managing Director
Mr. Dinesh AgrawalExecutive Director
Mr. Abhishek AgrawalExecutive Director
Mr. Siddharth AgrawalExecutive Director
Mr. Dinesh GandhiExecutive Director
Mr. Vinod PillaiNon Executive Director
Mr. Raj Kamal BindalIndependent Director
Mr. Samir AgarwalIndependent Director
Mr. Sunil DuggalIndependent Director
Mr. Hukum Chand DagaIndependent Director
Mrs. Neha Sunil HuddarIndependent Woman Director
Mrs. Roma Ashok BalwaniIndependent Woman Director

FAQ

What is the latest intrinsic value of Godawari Power & Ispat Ltd?

The latest intrinsic value of Godawari Power & Ispat Ltd as on 23 November 2024 is ₹204.24, which is 11.61% higher than the current market price of ₹183.00.

What is the Market Cap of Godawari Power & Ispat Ltd?

The Market Cap of Godawari Power & Ispat Ltd is 12,226 Cr..

What is the current Stock Price of Godawari Power & Ispat Ltd as on 23 November 2024?

The current stock price of Godawari Power & Ispat Ltd as on 23 November 2024 is 183.

What is the High / Low of Godawari Power & Ispat Ltd stocks in FY 2024?

In FY 2024, the High / Low of Godawari Power & Ispat Ltd stocks is 245/129.

What is the Stock P/E of Godawari Power & Ispat Ltd?

The Stock P/E of Godawari Power & Ispat Ltd is 13.7.

What is the Book Value of Godawari Power & Ispat Ltd?

The Book Value of Godawari Power & Ispat Ltd is 67.7.

What is the Dividend Yield of Godawari Power & Ispat Ltd?

The Dividend Yield of Godawari Power & Ispat Ltd is 0.55 %.

What is the ROCE of Godawari Power & Ispat Ltd?

The ROCE of Godawari Power & Ispat Ltd is 29.2 %.

What is the ROE of Godawari Power & Ispat Ltd?

The ROE of Godawari Power & Ispat Ltd is 21.9 %.

What is the Face Value of Godawari Power & Ispat Ltd?

The Face Value of Godawari Power & Ispat Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Godawari Power & Ispat Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE