Godawari Power & Ispat Ltd.
ISIN: INE177H01039 • Market Cap: —
The 5-Pillar Quality Audit for Godawari Power & Ispat Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (21.7%), Return on Capital Employed (21.7%), and equity compounding (16.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (0.3%) and 3Y PAT CAGR (0.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 20.56 vs PEG of — and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 63.2%, backed by 9.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 21.7%)
Godawari Power & Ispat Ltd. generates exceptional return on capital employed of 21.7%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Attractive Valuation Margin (P/E: 20.56)
Trading at a P/E multiple of 20.56, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 0.3%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking GPIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 71/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Capital Goods Sector Peer Comparison
Compare GPIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Godawari Power & Ispat Ltd. (GPIL)Current | 71/100 | — | 20.56 | 21.7% | 0.06 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: Godawari Power & Ispat Ltd.
Q:What is the 5-Pillar Fundamental Score for Godawari Power & Ispat Ltd. (GPIL)?
Godawari Power & Ispat Ltd. has a RupeeTools Fundamental Score of 71/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (83/100), Growth (40/100), Valuation (80/100), and Ownership Quality (68/100).
Q:Is GPIL fundamentally strong for long-term investment?
Yes, GPIL exhibits solid fundamental strength with a 71/100 score, driven by a return on equity of 16.5% and a debt-to-equity ratio of 0.06.
Q:Does GPIL pass the Coffee Can Investing filter?
No. GPIL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GPIL compare against other Capital Goods peers?
Within India's Capital Goods sector, GPIL trades at a P/E of 20.56 and generates an ROCE of 21.7%. Compare its 5-Pillar score of 71/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.