The buyback price is 30% higher than the current market price of Rs 1,078 per share.
This buyback of Rs 301 crore represents 1.64% of the total paid-up equity share capital of the company as of March 31, 2024 (excluding 45 lakh equity shares held by the trust in treasury), the company said in an exchange filing.
“This buyback is proposed to be made on a proportionate basis from the equity shareholders/beneficial owners of the company by Friday, June 28, 2024 (record date),” the company said in a filing.
In Q4FY24, Godavari Power & Steel Ltd reported a net profit of Rs 219.5 crore, up 29.4% year-on-year (YoY). In the same quarter, the firm reported a net profit of Rs 169.6 crore. Its revenue from operations grew 16.2% to Rs 1,529.8 crore as against Rs 1,316.6 crore in the same period a year ago.
At the operational level, EBITDA grew 19.3% to Rs 328.9 crore in Q4 this FY from Rs 275.8 crore in Q4 FY23. EBITDA margin stood at 21.5% in the quarter under review as against 21% in the same period last fiscal.
According to Trendlyne data, the average target price for the stock is Rs 1,250, indicating an upside potential of 16% from current market prices. Meanwhile, an analyst consensus recommendation for the stock is ‘Strong Buy’.
In technical terms, the stock’s relative strength index (RSI) is currently at 72.4. Trendline data showed that an RSI below 30 is considered oversold, and above 70 is considered overbought.
Moreover, the stock price of Godavari Power and Steel is above the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day and 200-day simple moving averages, which further strengthens the positive momentum.
On Friday, the stock closed 1.5% higher at Rs 1,078 on BSE.
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