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Godawari Power Shares Hit Record High on GAIL RLNG Supply Agreement
Last Updated: 12th December 2024 - 01:01 pm
Shares of Godawari Power and Ispat surged by 7% during morning trade on December 12, reaching a record high of ₹253.40 after the company signed a seven-year agreement with GAIL for the supply of re-gassified liquefied natural gas (RLNG).
With this rise, the stock extended its winning streak to nine consecutive sessions, delivering cumulative gains of over 29% during this period. By 9:53 a.m., Godawari Power share price were trading at ₹249 on the NSE, slightly below the day's peak but firmly in positive territory.
Trading activity in the stock was robust, with 81 lakh shares exchanged on the exchanges by that time—significantly exceeding the one-month daily average of 23 lakh shares. This increased trading volume further supported the strong upward momentum.
In its most recent quarterly earnings report, the company reported a 38.1% year-on-year decline in net profit to ₹159.1 crore for the September quarter, compared to ₹256.9 crore in the same period last year. Revenue from operations fell by 1.8% to ₹1,267.6 crore from ₹1,291 crore. Additionally, the EBITDA margin contracted to 19.5% in Q2 from 28% in the corresponding quarter of the previous year.
On December 12, the stock climbed by as much as 8.32%, hitting a fresh all-time high of ₹253.60 per share. The rise followed the announcement of the company's agreement with GAIL for RLNG gas supply for its upcoming pellet plant.
In an exchange filing, Godawari Power and Ispat stated, “We would like to inform you that our company has entered into an agreement with GAIL (India) Limited and exchanged the document at Raipur on December 10, 2024, for the supply of RLNG Gas for the company’s upcoming pellet plant in the ordinary course of business for a period of seven years.”
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