Positional setup for Godawari Power & Ispat Ltd (GPIL)

248
Technical Analysis (Daily Chart)

Indicator Setup: The price is trading above the 5, 9 & 13 EMAs—all aligned bullishly—indicating a positive trend.

Key Levels:

Resistance Turned Support: Around ₹203–205

Next Resistance / Target Zone: Near ₹217–220 (recent swing high)

Momentum: The breakout above the consolidation zone is showing strength.

Trade Plan:

Entry: On close above ₹206 (valid breakout confirmation)

Stop-Loss: ₹198–200 (below EMA cluster/support)

Targets:

Target 1: ₹217–220

Target 2: ₹235+ (stretch)

Fundamental Highlights

Key data from consolidated financials:

Market Cap: ~₹13,900 Cr

Valuation:

P/E approximately 18.6× — attractive vs sector peers (~30×)

P/B around 2.9–3.1×

Profitability:

ROCE: ~23.3%

ROE: ~17.3%

Profitability Trends:

FY24 consolidated profit: ~₹917 Cr; FY25: ~₹770 Cr (YoY decline ~16%)

Growth Metrics:

5-year sales growth: ~10% (modest)

Q1 FY26 net margin: ~17.7%

Strengths:

Virtually debt-free—robust balance sheet

Healthy returns and steady margin profile

Weaknesses:

Sluggish top-line growth

Moderate payout/investment intensity

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