Godawari Power & Ispat Limited

Basic Materials — Steel · NSE

₹211.93+₹4.69 (+2.26%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Godawari Power & Ispat Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Godawari Power & Ispat Limited, together with its subsidiaries, engages in the mining of iron ores in India.

IndustrySteel

SectorBasic Materials

Employees3,751

Annual revenue₹5,376 Cr

How does it make money?

Turns over ₹5,376 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 3,751 employees supports ₹1.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 22.0% and earnings to grow about 29.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.0%

Est. earnings growth+29.3%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -6% while net margin moved +8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-6%

Margin effect+8%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.1% a year
✗ Profit CAGR of only 0.3%
✗ Profit fell 0.6% in the latest year

Quality vs. Valuation

Company Quality

53/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

16.6x

3Y Median

17.7x

40 monthly readings · mean 20.9x · range 10.5x–61.9x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 17.7x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 18.2x.

vs. its own history

Fair

17.7x median over 40 months · -6%

vs. sector peers

Fair

18.2x median of 4 peers · -9%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.4x

PEG

54.07

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 21.5% to 24.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.3% to 13.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.1% to 17.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 7.58x — earnings must service borrowings before shareholders see anything.
🟡Debt is increasingFinancial
Total debt is up 40% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 21.5% to 24.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 7.58x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 20.3% to 13.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 23%✓ 24.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹69 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 15%✓ 17.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 17.7x✓ 16.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹13,797 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.24x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.74

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

17.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.58x

High

High leverage

Revenue Growth (YoY)

32.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-0.6%

Falling

Profits are shrinking

Dividend Yield

0.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹69 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

9.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.2%

Good

Healthy core-business profitability

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

3.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

219.2 / 233.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,735 Cr	₹5,439 Cr	₹5,368 Cr	₹5,376 Cr	-2.1%
EBITDA	₹1,232 Cr	₹1,397 Cr	₹1,265 Cr	₹1,334 Cr	+2.7%
EBITDA Margin	21.5%	25.7%	23.6%	24.8%	—
PAT (Net Profit)	₹793 Cr	₹935 Cr	₹812 Cr	₹801 Cr	+0.3%
EPS	₹12.23	₹14.89	₹13.14	₹12.58	+0.9%
ROE	20.3%	20.8%	16.5%	13.8%	—
ROCE	26.1%	26.6%	21.3%	17.6%	—
Total Debt	₹317 Cr	₹52 Cr	₹311 Cr	₹443 Cr	+11.9%
Free Cash Flow	₹538 Cr	₹622 Cr	₹360 Cr	₹69 Cr	-49.7%

🔴 Revenue has shrunk at 2.1% a year over 3 years.

🟢 EBITDA has grown at 2.7% a year over 3 years.

🟢 EBITDA Margin has risen from 21.5% to 24.8% over 3 years (+3.3 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.3% a year).

🟡 EPS has been broadly flat over 3 years (0.9% a year).

🔴 ROE has fallen from 20.3% to 13.8% over 3 years (-6.5 pts).

🔴 ROCE has fallen from 26.1% to 17.6% over 3 years (-8.5 pts).

🔴 Total Debt has grown at 11.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 49.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,296 Cr

Total Liabilities

₹1,447 Cr

Cash & Equivalents

₹306 Cr

Operating Cash Flow

₹1,157 Cr

Capex

-₹1,089 Cr

Shareholding (proxy)

Institutional Holding

7.4%

Insider Holding

63.3%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

14 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹290

+36.8% vs CMP

Target Range

₹290 – ₹290

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

3 mixed3 general

Godawari Power incorporates wholly owned energy subsidiary

scanx.trade, 17 Oct

Godawari Power And Ispat Share Price Near Support Level

Univest, 09 Oct

Godawari Power & Ispat (NSEI:GPIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

GPIL Invests ₹100 Crore In Battery Storage Business

HDFC Sky, 05 Jun

GPIL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Godawari Power Q1 Consolidated Net Profit At ₹221 Crore Against ₹217 Crore YoY

Sahi, 07 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑