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Friday, November 16, 2007

GODAWARI POWER & ISPAT LIMITED

GODAWARI POWER & ISPAT LIMITED is all set to move up. IT IS ONE OF THE MOST UNDERPRICED STOCKS IN THE RED HOT POWER SECTOR. First half EPS already stands at 17 plus rupees. With a projected EPS for full year of Rs. 34-36, GPIL is grossly undervalued. While peer companies in the Power Sector are having PE ratios of anything between 30-150, this stock deserves a re-rating. Recently the company has cleared fund raising plans of 210 crores. Technically also, this stock looks ready for a big move ahead. Current price is only Rs. 267. Can easily become a multibagger in the medium term.

26 comments:

vipin said...

thanks superstar for inviting me on ur site

Superstar said...

For people asking for targets..........as I said earlier, there are no targets in a bull market. Very often it happens in bull markets that stocks go far above your targets. Godawari Power & Ispat Ltd is grossly undervalued at current levels and does have the potential to double from here in the medium term.

Cheers!

Subhiksha said...

Thanks for your invitation. Your website is interesting.

akashrustagi said...

Dear superstar, Really u r superstar.Yr views is very much realstick.yr working on stock is highly impressive. Thank u very much

sharad said...

Goodwork superstar
Sharad

minhaj said...

GREAT BOSS, HATS OFF TO YOU SUPERSTAR.

minhaj said...

GREAT BOSS, YOU ARE A REAL SUPER STAR. I BECOME YOUR FAN BOSS. KEEP WALKING.

CHEERS,
MINHAJ, SAUDI ARABIA

DEEPAK DINDORKAR said...

hi superstar sir,
i purchased KRBL @113 ,500 SHARES WHAT SHOULD I DO I THINK I MADE A GREAT MISTAKE SHOULD I BOOK LOSS OR STAY INVESTED PLZ TELL ME SIR,
DEEPIL2003
PUNE

Superstar said...

Hi Deepak,

I don't know whether you've made a mistake by buying KRBL at 113. Only time can tell. But I can tell you that I am much more confident about GODAWARI POWER & ISPAT LTD at current price than KRBL. If I was in your place I would have switched to GPIL at current price.

Cheers!

DEEPAK DINDORKAR said...

hi superstar,
boss whichever scrip i purchased start downward journey and as i exit it begins to double its my badluck my rashi is libra , why this GPIL IS GOING DOWN touched 259 today will it correct from here or bounce back its really scaring iif it correct i purchased 300 shares @270 rs why it is going down when market is going up?

profmaster said...

Thanks Navin for Inviting Me.

I will suggest putting a subscription of your feed so that all of us can subscribe to it & know whenever a post is made on your site automatically.

You can use feedBlitz or Feedburner.

Superstar said...

Hi Profmaster,

Welcome to the site and thanks for your suggestion. I will surely look into it whenever I get some free time (which is not very often. LOL) I confess I need to learn a lot more about web-publishing. :)

Cheers!

Subhiksha said...

Hi Superstar,

I have 200 FDC bought at Rs 40, what should I do, hold or sell at a loss?

Superstar said...

Hi Subhiksha,

If I was in your place, I would not sell FDC at the current price of 30. The company's earnings figures are good and I'm hopeful that this stock can go back to your cost price soon.

Cheers!

Subhiksha said...

Thanks a lot for your advice. I will hold FDC till it crosses my cost price.
Thankyou once again.
Regards,
subhiksha

deep said...

hi SUPERSTAR,
AS U TOLD ME NOT TO DISTURB U I AFRAID TO ASK ANYTHING WHICH I WANT TO ASK ,I AM WRITING TO ONLY GIVE THANKS FOR GPIL AND ALPS TODAY ALL MY LOSES FILLED UP I TOLD U THAT I PURCHASED 1100 SHARES OF ALPS @63 TODAY IT CROSSES 65 BUT I HAVENT SELL BCOZ U TOLD ME THAT BE A INVESTOR NOT A TRADER OR GAMBLER ,I FOLLOWED UR ADVICE ,
AFTER LONG TIME I AM WRITING TO U , STILL I AM HOLDING 500 SHARES OF KRBL PURCHASED@114 TODAY IT ALSO CROSSES 117 SO ALL MY SCRIP SEEMS THAT TOMORROW IT WILL SHOW GREEN COLOUR INPLACE OF RED THNKS FOR UR GOOD ADVICE I NEVER WANTED TO HURT ANYONE SOORY FOR TROUBLE CAUSED BY ME.

SINCERELY
DEEPAK DINDORKAR

Superstar said...

Dear Subhiksha and Deepak,

FDC had a high of 44.85 today and within 4 days it has moved from 30 to current level. GPIL, Jayaswal Neco, SA Petro and some of my older picks like DCM Shriram Conso, Suraj Diamonds, Madhav Marble etc. are all up handsomely.

The lesson to be learnt from this is that retail investors should keep some patience when they know that they are holding good stocks and not sell them at a loss in panic due to operator activity. Keep your expectations realistic. Don't expect your stocks to double every month (although, anything can happen in this mkt). Give your investments time to grow.

Cheers!

apoorv said...

Godawari Power and Ispat is basically a sponge iron company, which has electricity as byproduct, contributing merely 2% of the revenue. Other biggies in sponge iron segment have even more attractive valuation

monica said...

Hi Superstar,
I have purchased 100 shares of GPIL at 350. I am planning to hold them for at least 6 months. Can you please let me know a conservative target for this time frame.
Your ardent admired,
Monica.

deepil2003 said...

hi superstar,
it would be best if u could tell us medium term and longterm prospect for gpil i will hold if u will give target for GPIL FOR 1 YEAR I AM HAVING 400 SHARES @295
REGARDS
DEEPIL2003
DEEPAK DINDORKAR PUNE

Superstar said...

Hi Monica,

I had given a Buy call on GPIL at 267 levels after which it has spurted to highs of 360 plus. Although your purchase price at 350 is high, in your time frame of six months, you should still make decent profits, depending upon the overall sentiment prevailing in the market. The next technical levels to watch are 420 and 450.

Cheers!

deepil2003 said...

hi superstar,
will it be a good decision to hold this scrip for one year or should book profit when it reaches to 390-400 level, we donot know one year prospect we r new in this field
kindly show us path
if long term can give good gain we will not sell it ,if upside is limited we will book our profit
kindly reply us
regards
deepak

sudiprc said...

Hi SuperStar, do u track Jayaswal Neco? Could u give some target (medium or long)?

Superstar said...

Hi Sudiprc,

Welcome to the site. Jayaswal Neco was recommended by me around 30-31 levels one and a half months back. Yesterday, it saw a high of 69.65 from where it is now correcting. I have given the targets about this stock in a thread dedicated to this stock.

At the bottom of the main page of this site, you will see a link saying "OLDER POSTS". Click on that for viewing older topics. You will find Jayaswal Neco there.

Cheers!

deepil2003 said...

HI NAVIN
I ASKED U BUT NOT GET REPLY THAT WILL IT BE FINE TO HOLD THIS STOCK FOR THE PERIOD OF ONE YEAR OR IS THERE ANY UPSIDE LEFT INTHIS STOCK GPIL, OR WE SHOULD GET OUT OF THIS SCRIP AT 380 400 LEVEL, IS THERE ANY CHANCE TO DOUBLE THIS RATE IN THE COMING 12 MONTH DEC2008
I AM HOLDING 400SHARES@289 RUPEES
KINDLY GUIDE US

Superstar said...

Dear Deepil2003/Deep/Deepak Dindorkar,

Firsty, pls make up your mind at what rate you bought GPIL. In your first message you said you bought 300@270, then you said 400@295, and now you say 400@289. LOL.

Secondly, doesn't my answer to Monica answer your question too? Do I have to repeat the answer to the same question again and again to each individual? Pls make some effort to read the entire thread first to see if your question has already been answered or not.

I have said this elsewhere also on this site that there are two ways of playing the stock market.

1)If you are a short term player, keep booking profits at every 20-30% rise in a share if it shows signs of technical correction and re-enter at lower levels.

2)If you are a long term player and are confident that you have bought a fundamentally sound share with decent long term growth prospects, then hold it for at least one year to derive the maximum profit out of that stock.

Cheers!