Synopsis: Godawari Power’s subsidiary has signed a long-term battery cell supply agreement with a Chinese company, supporting its energy storage plans and giving better visibility for future production and execution.
The shares of this small cap company majorly 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 were in focus after signing an agreement with a Chinese company for the supply of cells.
With the market capitalization of Rs. 20,171 crores, the shares of Godawari Power & Ispat Ltd reached an intraday high of Rs. 302.35 per share raising upto 5 percent from its previous day close of Rs. 289.15 per share and is trading at a P/E of 27.2 whereas industry P/E stands at 20.7.
What is the news
Godawari Power & Ispat Ltd wholly owned subsidiary GNEPL has entered into a 5-year agreement with EVE Energy Co., Ltd. for the supply of 628 Ah LFP cells, which are key components used in battery storage systems. These cells will be used for manufacturing the first phase of 20 GWh Battery Energy Storage System (BESS) containers.
The agreement is important because it ensures a stable and reliable supply of Grade 1 cells, helping the company manage costs better and plan production smoothly over the long term. This development is a key step in building its battery storage business and strengthens its position in the growing clean energy space.
About the Company and Financials
Godawari Power & Ispat Ltd is majorly 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. The company has an integrated presence across the steel value chain, spanning 3.05 MT iron ore mining, 2.7 MT pellets, 0.594 MT sponge iron, and 0.525 MT steel billets.
It also has downstream capacities in MS rounds (0.4 MT), HB wires (0.10 MT), ferro alloys (91,500 tonnes), along with 300 MW power capacity and a 0.11 MT fabrication and galvanizing plant where the company has achieved 2.3 MnT of iron ore production and 2.4 MnT and 0.6 MnT of pellet and sponge iron production respectively during FY25
Year on Year analysis: Revenue from operations has decreased from Rs. 1298 Crores to Rs. 1139 Crores, down 12.2 percent. Operating profit has decreased from Rs. 221 Crores to Rs. 218 Crores, down 1.3 percent and net profit has decreased from Rs. 145 Crores to Rs. 143 Crores, down 1.3 percent
Quarter on Quarter analysis:Revenue from operations has decreased from Rs. 1308 Crores to Rs. 1139 Crores, down 13 percent. Operating profit has decreased from Rs. 260 Crores to Rs. 218 Crores, down 16.1 percent and net profit has decreased from Rs. 162 Crores to Rs. 143 Crores, down 11.7 percent
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Power stock in focus after subsidiary signs pact with Chinese Co. for BESS manufacturing appeared first on Trade Brains.