Special Dividend of Rs 1.25 per share and 5:1 Stock Split: FIIs increases 2.46 per cent Stake in this Multibagger Stock

The stock has delivered multibagger returns of 103.81 per cent in a year.

Godawari Power & Ispat Ltd has approved a special dividend of Rs. 1.25 per equity share, which is 25% of the nominal value of Rs. 5 each, for all 13,37,94,988 equity shares. This special dividend will be paid to shareholders on or after August 28, 2024. The record date to determine eligible shareholders is August 17, 2024.

Additionally, the company has proposed to split its equity shares. Each share with a face value of Rs 5 will be divided into 5 shares, each worth Re 1. It means if you have one share of Godawari Power & Ispat Ltd then you will get 5 shares of Godawari Power & Ispat Ltd with face value of Re 1 each.

Godawari Power & Ispat is mainly engaged in the business of Mining of Iron Ore and Manufacturing of Iron Ore Pellets, Sponge Iron, Steel Billets, Wire Rods, H.B. Wire and Ferro Alloys with generation of electricity.

In the Quarterly Results of June 30, 2024, the company reported a revenue of Rs 1,342 crore, which is up by 1.21 per cent from the same period last year but down by 12.29 per cent from the previous quarter. Net profit for this quarter was Rs 287 crore, reflecting a year-over-year increase of 24.24 per cent and a quarter-over-quarter rise of 31.05 per cent. For the fiscal year 2024, revenue decreased by 5.05 per cent to Rs 5,455 crore, while net profit grew by 18.03 per cent to Rs 936 crore.

Godawari Power & Ispat Ltd has a market cap of Rs 15,599 crore and a current price of Rs 1,145. Its 52-week high is Rs 1,224 and low is Rs 551. Over the past year, the stock has given multibagger returns of 103.81 per cent and whooping 1,253.30 per cent over five years.

Market Outlook:

• Global iron ore prices have been volatile, touching  USD 144 in January 24 and currently at USD 130.
• China imports were strong, while domestic iron ore production lagged.
• Steel demand forecasted to grow, supporting iron ore demand.
• India's steel demand expected to increase significantly.
• Pellet prices expected to be well supported.
• Domestic iron ore prices have seen an increase.
• Expecting a 10 per cent increase in prices post-Holi.
• Margins to be maintained if current prices are sustained.
• EBITDA margin target of 24-25 per cent based on current market conditions.

Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.