Monday, November 24, 2008

Godawari Power Slides To Low On Cancellation - Nov 24, 2008

The company made this announcement before trading hours today, 24 November 2008.Meanwhile, the BSE Sensex was down 119.14 points, or 1.34%, to 8,796.07.On BSE, 34,363 shares were traded in the counter. The stock had an average daily volume of 19,460 shares in the past one quarter.The stock hit a high of Rs 66.10 so far during the day. The stock hit a low of Rs 59.10 so far during the day, which is 52-week low for the counter. The stock hit a 52-week high of Rs 376.50 on 1 January 2008.

The small-cap stock had underperformed the market over the past one month till 21 November 2008, declining 26.47% as compared to the Sensex's decline of 16.55%. It had also underperformed the market in the past one quarter, declining 68.26% as compared to the Sensex's decline of 37.41%.

The company's current equity is Rs 28.07 crore. Face value per share is Rs 10.

The current price of Rs 60 discounts the company's Q2 September 2008 annualized EPS of Rs 45.30, by a PE multiple of 1.32.

Earlier, on 27 October 2008, the company's had board approved buying back a minimum three lakh shares at maximum price of Rs 135 a share.

The company has also decided to sell surplus power in open market in view of attractive price realization and better margins

The company also decided a temporarily cut down production of steel billets and ferro alloys until further decision in this regard. The other divisions sponge iron, power generation, wire drawing will continue to function normally, the company said.

Godawari Power & Ispat's net profit rose 48.3% to Rs 31.79 crore on a 86.1% rise in sales to Rs 331.61 crore in Q2 September 2008 over Q2 September 2007.

The company is engaged in manufacturing steel intermediate products like sponge iron and ferro alloys and finished long steel products like billets, wire rods and mild steel wires, which find application in the construction and infrastructure sectors. The group operates in three segments namely steel, electricity and others.

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