Godawari Power and Ispat board approves Rs 301 crore share buyback at 30% premium, sets record date

The Board of Godawari Power and Ispat approved a share buyback plan from investors for Rs 301 crore. Under the proposed plan, the company will buy back about 21.5 lakh fully paid-up equity shares at Rs 1,400/share.

The buyback price is at a 30% premium to the current market price of Rs 1,078 per share.

This buyback, amounting to Rs 301 crore, represents up to 1.64% of the company's total paid-up equity share capital as of March 31, 2024 (excluding 45 lakh equity shares held by the Trust in Treasury), the company said in an exchange filing.

"The Buyback is proposed to be undertaken from equity shareholders/beneficial owners of the company as of Friday, June 28, 2024 (Record Date), on a proportionate basis," the company said in a filing.

In Q4FY24, Godawari Power & Ispat Ltd reported a 29.4% year-on-year (YoY) jump in net profit at Rs 219.5 crore. In the corresponding quarter, the firm posted a net profit of Rs 169.6 crore. Its revenue from operations increased 16.2% to Rs 1,529.8 crore versus Rs 1,316.6 crore in the year-ago period.

At the operating level, EBITDA rose 19.3% to Rs 328.9 crore in the fourth quarter of this fiscal over Rs 275.8 crore in the fourth quarter of FY23. The EBITDA margin stood at 21.5% in the reporting quarter against 21% in the corresponding period in the previous fiscal.

As per Trendlyne data, the average target price of the stock is Rs 1,250, which shows an upside potential of 16% from the current market prices. Meanwhile, the consensus recommendation from one analyst for the stock is a 'Strong Buy'.

In technical terms, the relative strength index (RSI) of the stock is currently at 72.4. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.


Moreover, Godawari Power and Ispat's stock price is higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, further reinforcing the positive momentum.

On Friday, the stock closed 1.5% higher at Rs 1,078 on the BSE.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)