Godawari Power (GPIL)

FairStock Score: 75/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Godawari Power through Graham's demand for safety and Buffett's preference for durable economics. It is an iron and steel products business, so I start with the caveat that this is cyclical, not a consumer moat. The balance sheet is the strongest feature: debt/equity is only 0.08, ROCE is 23.25%, ROE is 15.12%, and free cash flow is ₹459 Cr. The latest quarter produced ₹1,139 Cr of sales and ₹143 Cr of net profit. Sales growth of 51.13% is impressive, but profit growth of 10.59% tells me the company is not converting all that expansion into bottom-line gains; five-year revenue CAGR of 10.43% is more sober. Promoter holding of 63.50% is a positive alignment signal, though dividend yield of 0.42% is thin. Valuation is where I hesitate. At ₹235.43, P/E is 18.76 and P/B is 2.49 against book value of ₹94.56. Those aren't outrageous for a cyclical, but Graham Number is ₹132.78, and DCF intrinsic value is ₹59.49. With margin of safety at -100.34%, I am paying well above conservative intrinsic worth. Altman Z-Score of 3.97 and Piotroski F-Score of 6/9 suggest solvency and decent fundamentals, not a bargain. EV/EBITDA of -16.03 is odd and not helpful. FairStock score 75/100 STEADY. I would watch profit conversion, FCF, debt, and the gap to Graham value. Good business, but at this price I pass.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer