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Technical Report on Godawari Power & Ispat by Shyam Advisory

March 7, 2022

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.
Captive Iron Ore Mines:
Company has two capitve mines- Ari Dongri Mine & Boria Tibu Mine.
GPIL sources 85% of its iron ore needs captively from its mines for the production
of steel.
Captive mining leads to huge raw material costs saving.
Subsidiary-ASL has to rely on merchant mines for its RM needs.
Capacity as of FY20:
Iron Ore: 2.1 million tonne per annum
Iron Ore Pellet: 2.8 million tonne per annum (inclusive of ASL pellet capacity)
Sponge Iron: 0.5 million tonne per annum
Billet: 0.4 million tonne per annum
MS Rounds: 0.4 million tonne per annum
HB Wires: 0.15 million tonne per annum
Ferro Alloys: 16,500 tonne per annum
Power: 73 MW
Stake Sale in Subsidiary-Ardent Steel Ltd:
GPIL has reduced its stake in ASL to 37.85%, from 76.34%, but will retain
management control.
It will utilise the proceeds, of around 76.24 Cr (net of capital gain tax), towards
debt reduction.
Environmental Clearance for expansion & modernization of existing facilities:
This will increase forward integration and provide more capacity for beneficiation of
iron ore.
MoU with the Government of Chhattisgarh:
Cost of project is estimated at 1400 Cr for Raipur Region & 900 Cr for Bastar
It will be implemented in phased manner mainly out of internal accruals.
The investment will be spread out over 4-5 years.
Power Subsidiary-Godawari Green Energy:
Solar plant located at Jaisalmer, Rajasthan. The project was awarded under
Jawaharlal Nehru National Solar Mission, Phase I of Govt. of India.

Operational since FY14, fixed price PPA with NTPC Vidyut Vyapar Nigam for 25
years at
12.20/unit. Solar plant is self sufficient to meet its debt obligation.

GPIL 1 - Shyam Advisory
Technical View: GPIL, Structured Formation on daily chart looks positive. it had
classical pennant pattern breakout with strong Bullish candle and have sustain
above breakout, possiblly stock may retest brekout level which is at 330. RSI
Divergence indicates Positive trend.
Volume analysis: – 1 Day Delivery volume fell by -26.99% over 5 day average,
However; 1 Month: Delivery volume increase by 17.84% ,hence; We recommend
BUY signal for this share. Buying can be done between 330-340 for the Target 406,
Target 459, Use Strict stop loss 320.
Moving Averages: -Godawari Power & Ispat Ltd. is trading higher than 5 day, 20
day, 50 day, 100 day and 200 day moving averages.
5 Day 312.54 50 Day 289.24 200 Day 305.18
20 Day 316.49 100 Day 295.77

Shareholding pattern:-

GPIL 2 - Shyam Advisory
Promoter holding 67.5% in Dec 2021, No change in Promoter holdings, No change
in Promoter pledged shares.
Key Ratio:-

GPIL 3 - Shyam Advisory