SYNOPSIS: Two companies saw stock gains after announcing significant capex plans, aimed at expanding capacity, strengthening execution capabilities, and capitalising on strong demand across steel, infrastructure, and renewable energy sectors.
Capital expenditure (CapEx) refers to the investments companies make in acquiring, upgrading, or maintaining long-term assets such as plants, machinery, and technology. These investments are critical for expanding operational capacity, improving efficiency, and driving sustainable long-term growth.
By allocating capital toward fixed assets, such as setting up new facilities or upgrading infrastructure, companies aim to strengthen their competitive positioning and capitalise on emerging opportunities. CapEx decisions often reflect strategic intent, enabling businesses to scale operations and enhance productivity over time. Against this backdrop, two companies witnessed notable stock price gains by up to 12 percent following their recent capex announcements:
Godawari Power and lspat Limited
With the market capitalisation of Rs. 17,632 crore, the stock hit an intraday high at Rs. 264.85 on BSE, up by more than 5 percent from its previous closing price of Rs. 251.75 per share.
As per the latest disclosure, the Board of Godawari Power and Ispat Limited has approved the proposal to set up an Integrated Steel Plant with a capacity to manufacture 1 million tons per annum (MTPA) of Iron & Steel finished products in the form of heavy & medium section structural steel and wire rods.
The proposed facility will be located in Sarora village, near Raipur in Chhattisgarh, with an estimated investment of around Rs. 7,000 crore. The project will be funded through a mix of debt and internal accruals in a 1:1 ratio.
Currently, the company operates with an existing capacity of 0.5 MTPA at its Siltara Industrial Area facility in Raipur, with utilisation levels exceeding 95 percent, indicating strong operational efficiency and demand.
The expansion is driven by robust and growing demand for structural steel in India, positioning the company to enhance its production capabilities and cater to increasing market requirements.
Godawari Power & Ispat Limited is mainly engaged in mining of iron ore and manufacturing of iron ore pellets, sponge iron, steel billets, wire rods, HB wire and ferro alloys with the generation of electricity.
Trishakti Industries Limited
With the market capitalisation of Rs. 230.3 crore, the stock hit an intraday high at Rs. 139.95 on BSE, up by around 12 percent from its previous closing price of Rs. 125.35 per share.
As per the latest disclosure, Trishakti Industries has already deployed around Rs. 190 crore in capex during FY26, significantly exceeding its initial guidance of Rs. 100 crore, taking its cumulative fleet investment in equipment to around Rs. 240 crore. Its fleet size has expanded to 138 machines, all operating at full utilisation across more than 20 active projects.
This accelerated cpaex deployment has been driven by strong project visibility, a favourable macroeconomic environment for infrastructure and renewable energy, and the company’s ability to rapidly deploy high-capacity equipment for marquee projects.
The capex deployed in FY26 includes procurement of advanced crawler cranes, mobile lifting systems, boom lifters, and specialised industrial equipment sourced from globally reputed OEMs, including XCMG Group and Sany. This expansion has raised the company’s total asset base to over Rs. 240 crore, representing around 60 percent of its long-term guided capex plan of Rs. 400 crore through FY28.
Trishakti Industries Limited is one of the leading infrastructure companies with a focus on providing heavy earth-moving equipment solutions to major industrial and infrastructure players.
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