Shares of Godawari Power and Ispat Ltd. rose on Friday after the Chhattisgarh Environment Conservation Board gave its nod to enhance capacity of steel melting shop at its Chhattisgarh plant.
The board gave a "consent to operate" to enhance capacity of SMS from 4 lakh metric tonnes per annum to 5.25 lakh metric tonnes per annum at its existing plant in Siltara Industrial Area, Raipur. The increased capacity is under use with immediate effect, the company said.
"With the approval for consent to operate the higher capacity of steel bill manufacturing, the sponge iron manufactured by the company shall be 100% captively consumed, which will lead value addition and improvement in the operating margins," an exchange filing said.
Shares Godawari Power rose as much as 4.60% intraday. They pared gains to trade 2.49% higher at 12:41 p.m., compared to a 0.47% advance in the NSE Nifty 50.
The stock has risen 88.63% year-to-date. Total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 59.
The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 105.5%.
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