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GPIL: Solar Capacity Expansion Will Drive Stronger Future Performance

Steel And Battery Investments Will Drive India's Infrastructure Expansion

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GPIL
AnalystConsensusTarget
Not Invested
Published 20 Feb 2025

Update shared on 16 Dec 2025

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1Y
12.6%
7D
-2.4%

Analysts have maintained their fair value estimate for Godawari Power & Ispat at ₹275, noting only marginal tweaks to model assumptions such as discount rate and forward earnings multiple, without sufficient new catalysts to warrant a change in the price target.

What's in the News

  • The board will meet on December 4, 2025 to consider acting as a specific investor in the proposed rights issue of DGML, including the option to take up 100 percent of any undersubscribed portion beyond 90 percent, and to address other routine matters (company filing).
  • On November 14, 2025 the company closed a private placement transaction that had received approvals from the Stock Exchange of India Limited and BSE Limited (company filing).
  • On November 14, 2025 the board approved a 250 MWp solar power plant at Raigarh, Chhattisgarh, with an estimated cost of INR 7.50 billion, to be funded partly through INR 2.50 billion of internal accruals and INR 5 billion of bank finance, with commissioning targeted by March 2027 (company filing).
  • The board meeting on November 14, 2025 also considered unaudited quarterly and half yearly results, the solar power plant proposal, and the allotment of 20,408,220 equity warrants on a preferential basis at INR 245 per warrant (company filing).
  • An extraordinary shareholders meeting is scheduled for October 15, 2025 to approve the issuance of up to 20,408,220 convertible warrants on a preferential basis to promoters, the promoter group and identified non-promoters, for gross proceeds of about INR 1.25 billion, with the warrants convertible into equity within 18 months (company filing).

Valuation Changes

  • Fair Value Estimate remains unchanged at ₹275 per share, reflecting no material shift in long term fundamentals.
  • The Discount Rate has risen slightly from about 14.50 percent to roughly 14.60 percent, implying a marginally higher required return.
  • Revenue Growth is effectively unchanged at about 22.4 percent, indicating a stable outlook for top line expansion.
  • The Net Profit Margin is broadly stable at around 21.0 percent, suggesting no major revision to profitability expectations.
  • The Future P/E has edged up slightly from about 12.15x to roughly 12.18x, indicating a modestly higher valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.