In a notable display of resilience, shares of Godawari Power and Ispat Ltd surged during Tuesday's trading session, firmly bucking the overall weak sentiment prevailing in the Indian stock markets. The metal stock witnessed significant buying interest, propelling its price higher by more than 4 percent at its peak.
Intraday Rally Defies Broader Market Trend
On Tuesday, December 30, Godawari Power shares opened on the BSE at ₹255.85, slightly below their previous closing price of ₹256.30. However, the stock quickly gained momentum and climbed sharply to hit an intraday high of ₹267. This represented a robust gain of 4.2 percent from the previous close.
Even as the session progressed, the stock maintained its strength. Around 1:15 PM, it was trading at ₹261.75, still up by a solid 2.13 percent. This performance stood in stark contrast to the benchmark Sensex, which was in the red, trading 0.18 percent lower at 84,541.60 at the same time.
Strong Fundamentals and Stellar Returns
The company's stock has been a standout performer over multiple time horizons. Data from the BSE reveals an impressive track record. On a year-to-date basis, the stock has appreciated by 23 percent, significantly outperforming the Sensex, which has risen by only 8 percent in the same period.
The long-term returns are even more extraordinary. Godawari Power shares have delivered multibagger returns of 250 percent over the last three years. Extending the view to a five-year period, the performance is nothing short of stellar, with the stock generating a monumental return of 1041 percent.
The stock's 52-week journey has been volatile but rewarding. It touched a yearly low of ₹145.55 on March 3 this year before rallying to hit its 52-week high of ₹290 on October 29.
CARE ESG Rating Upgrade: A Key Catalyst
The positive market movement was fueled by a significant corporate development. Godawari Power informed the exchanges that CARE ESG Ratings had upgraded its environmental, social, and governance (ESG) assessment on December 29.
The company's new rating symbol is "CARE-ESG 1", accompanied by a substantially improved rating score of 76.6. This marks a major leap from its previous rating of "CARE-ESG 3" with a score of 51. The CARE-ESG rating evaluates how effectively a company manages its ESG-related risks and capitalizes on associated opportunities.
In a separate filing on December 17, the company disclosed another strategic move. It announced that it had received shares of its wholly-owned subsidiary, Godawari New Energy Private Limited. This followed an investment of ₹73.95 crore via a rights issue. The company was allotted 7,39,50,000 non-cumulative participating optionally convertible redeemable preference shares of ₹10 each on December 16, 2025.
The twin developments—the enhanced ESG credentials signaling robust governance and sustainable practices, and the continued investment in its new energy subsidiary—appear to have bolstered investor confidence in Godawari Power and Ispat, leading to its market-beating performance on a day of general weakness.
