Multibagger Stock: Godawari Power & Ispat zoomed 200% in 13 months, advanced 4640% in 8 years; should you invest?

Shares of Godawari Power & Ispat have demonstrated a robust upward trajectory implicit the past 13 months, importantly enhancing capitalist wealthiness wrong a remarkably little period. From a trading terms of ₹359.60 apiece, the company's shares person surged by an awesome 200%, to commercialized astatine the existent level of ₹1,090 per share.

During this period, the banal finished 10 months with gains. This accordant upward trajectory has translated into a singular 1918% summation implicit the past 5 years alone, with an awesome semipermanent summation of 4640% implicit the past 8 years.

During the past 9 calendar years, the banal has closed successful the reddish lone 3 times, achieving multibagger returns successful 4 of those years. Notably, it delivered exceptional yearly returns of 484% successful CY17 and awesome performances of 105%, 134%, and 103% successful CY20, CY21, and CY23, respectively.

GPIL's strategical attack and robust infrastructure person solidified its presumption arsenic a formidable subordinate successful the industry. It is ramping up its mining output astatine the Ari Dongri mines, which are slated to go the superior earthy worldly root for its pelletization and HRC plants successful the future. According to YES Securities, a home brokerage firm, these mining activities volition bolster GPIL's quest to look arsenic 1 of the country's astir businesslike alloy producers.

Currently, GPIL is expanding its pellet plants' capableness from 2.70 cardinal tonnes per twelvemonth (mtpa) to 4.70 mtpa. The institution has opted for high-grade pellets implicit robust ore lumps and blended ember successful its sponge robust manufacturing process.

According to the brokerage, these premium-quality pellets bid a terms premium of astir ₹1,000 to ₹1,500 per tonne implicit standard-grade pellets. The caller pellet plant's capacity, acceptable to beryllium commissioned successful aboriginal FY26, is expected to adhd astir 1.0 cardinal tonnes of incremental volumes from FY24 onwards, importantly impacting the company's fiscal outlook.

Expanding its mining and pelletisation capabilities, the brokerage highlighted that the institution is strategically positioned towards integrated alloy production. Its adjacent milestone is the improvement of a 2.0 mtpa integrated HRC (hot-rolled coils) plant, scheduled for completion betwixt September 2027 and March 2028.

By establishing this plant, GPIL aims to maximise its backward integration capabilities and consolidate its presumption arsenic 1 of the nation's astir cost-efficient alloy producers.

Looking ahead, the brokerage anticipates that GPIL's debt-free equilibrium expanse volition facilitate concern successful caller superior projects utilizing interior funds. Reduced involvement expenses are expected to bolster currency flows, supporting aboriginal superior expenditure initiatives.

Currently, GPIL is embarking connected a important venture—a ₹60,000 cardinal greenfield integrated HRC works with a capableness of 2.0 mtpa. The institution plans to concern a important information of this concern done interior currency accruals and existing net-worth capital.

Encouraged by these maturation prospects, the brokerage has initiated sum connected GPIL with a people terms of ₹1,390 per share, representing a grounds precocious and signalling a imaginable upside of 27.52% from the erstwhile closing terms of ₹1,090 per share.

Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.