Godavari Power & Ispat Ltd ( GPIL) -

Godawari Power & Ispat Ltd. (GPIL) a public Ltd. Co., belonging to HIRA Group of Industries, Raipur, was incorporated in 1999 to set up an integrated steel plant with captive power generation .GPIL , today is a totally integrated steel plant which manufactures mild steel wires , sponge iron, billets, Ferro alloys, captive power, wires rods , Oxygen gas, fly ash brick etc etc . Today GPIL is the third largest manufacturer of coal based sponge Iron in India and one of the largest players in the mild steel wire segment .








Investment in this company is adviced due to the following positive aspects

1. Company has started the mining ore from their own iron ore mine
2. Company has commenced the operation of iron ore palletitation plant
3. Commercial operation of 20 MW Bio-mass power plant also has started
4. Company has got the permission for starting a solar power plant with
a capacity of 5o Mw
5. De-merger of this company into two based on steel and power and it’s
subsequent value unlocking

There will be dramatic improvement in the working of GPIL from current year with the commencement of operation of iron ore mine , power plant and the palletitation plant which will result in the lower raw material cost . As per my estimate company will close this year with a Net profit of Rs 73 /- resulting an Earning per share of Rs 26/- and a Book value of over Rs 190 /- which means that the share available now at a price less than it’s Book value .

Investment in this share is recommended at current price with an expected price of Rs 300 with in next 12 months