Dear all.......,

Now Buy good Fundamental Stocks like GODAVARI POWER & ISPAT LTD at 165/- Quoting BSE, NSE (10/- Face Value).

Global Markets is stabilizing. In Indian Equities avialble at good prices. Worst is over. I think FII`s also coming back to Indian Markets to Invest. All Bulls are coming back to Market. Annual Results also coming out in April. Start Buying at low levels Now. Don't panic Sell. Buy good fundamental equities partially daily, You will get 30 to 50% appreciation within 1 to 2 months time. Risk is very very less. My Expactation : 90 % chances Upside only 10% chances Down Side for short term (1 Month).

GODAVARI POWER & ISPAT Ltd, Trading in BSE & NSE at 165/-- in B Group.
This is 10/- FaceValue share trading at 165/-. Yearly high 400/- in January 2008 (Before marjet Crash), its come down to 155/- recent low. Now trading at 165/-. Daily grabbing with Mumbai BIG BIG Bulls because of Now stock is available at very very cheep price at 165/- EPS 40+ expecting for 2007 - 2008 Annual finalcial, with PE 4 only. Narmally in worst condition also PE will at 8 for Power and Ferro Alloys. But Now PE is only 4.

If you have already this equities buy some more make average. This is company is doing very very good. Slowly grab this stock. Fundamental is very very good. Global cues and Market worst is over. Don’t Sell if you have Godavari Power & Ispat equities. Stay Invest and wait up to 250/- minimum.

GODAVARI POWER & ISPAT Ltd at 165/- (Annual EPS is 40+ Expecting) PE only 4. Normally take Power companies High companies PE was 40, Medium companies PE was 15. If we take medium companies PE 15 It will come 600/-. Now markets are week. So If we take PE 6 It will touch 250/- minimum before Annaul Financila Results declaring (One months time). Book Value also good. Good fundamental. Very Very less risk at present rate. Only 10% chances downside, 90% chances Upside for 1 to 2 months time. SO hurry Buy at current level at 165/-.

GODAVARI POWER & ISPAT Ltd Equity was 24 Crores. Company Annonced good results last Three quarters (21 Crore, 21 Crores & 24 Crores, Forth Quarter results also coming good with 28 Crores Net Profit. , the company expects to achieve a PAT of Rs 96 Crores for FY08 So Annual EPS is coming 40/- +

Promoters Share Holding 64%, Forign Holding 5%, Financial Institutions 11%, CorporateBodies 6%, Public only 14%.

HDFC Children Gifts - Investment Plan - Growth --- 3.37%

ABN AMRO Future Leaders Fund - Growth --- 2.45%

ABN AMRO Future Leaders Fund - Growth --- 2.45%

DSP ML Micro-Cap Fund - Growth --- 1.83%

The business model of Godavari Power & Ispat Ltd (GPIL) is on strong footing and is on way strong growth path. It is carving great value creation and hidden
value shall unfold with the passage of time to investor\\`s delight.
This is a jewel stock which value investors must keep on
accumulating on decline. The more declines more buy shall be the
best investment strategy. Just look into recent announcements that
the company has made which shall result into mind blowing wealth
creation:

The Company has allotted 10,00,000 warrants convertible into equity
to M/s.Hira Industries Limited (Promoter group) at a price of
Rs.324/- per warrant which will be converted into one equity share
of Rs. 10/- each fully paid at a premium of Rs 314/- per share.
During the current meltdown, this stock is available in the market
at throwaway mouth watering price of Rs.165 per share which means
investors are getting stock at 70% discount from promoter\\`s price.

India success story is here to stay for next decade and shall be
most favored economy of the world and stocks like GPIL shall go long
way in wealth creation and shall deliver mind blowing returns to the
investors and shareholders. By buying this stock, investors shall
cry with happiness:

IT WAS ROSES, ROSES, ALL THE WAY.
StrongAccumulation: From the data, it can be safely said that strong hands are
accumulating this stock in the present meltdown. Hold your stock and
add more on decline. A fantastic stock with great future. A clear
strong buy.

Godawari Power & Ispat Ltd has informed that pursuant to the approval of the shareholders in the extraordinary general meeting held on December 15, 2007 for issue of equity shares under Qualified Institutional Placement to QIBs and as per the Preliminary Placement Document dated December 17, 2007 filed with the Stock Exchanges, the Committee of the Board of Directors in its meeting held on January 12, 2008 allotted 3225807 equity shares of Rs 10 each fully paid at a premium of Rs 300 per share to the following QIP Investors:
1. Lehman Brothers Asia Ltd Sub A/c Name: GRA Finance Corporation Ltd : 413,832 No of Shares
2. Global Asia Fund Ltd (Mauritius) Sub A/c Name: Global Proprietary Fund : 132,426 No of Shares
3. Oman National Investment Corporation Holding SAOG : 67,537 No of Shares
4. Punjab National Bank : 105,100 No of Shares
5. DSP Merrill Lynch Trustee Co. Pvt Ltd Sub A/C. Name: DSP Merrill Lynch Tax Saver Fund : 31,530 No of Shares
6. Deutsche Securities Mauritius Ltd: 423,764 No of Shares
7. Allahabad Bank : 213,590 No of Shares
8. Premier Investment Fund Ltd : 225,125 No of Shares
9. Japan Trustee Services Bank, Ltd Sub A/C. Name: STB Lloyd George-India Equity Mother Fund : 161,373 No of Shares
10. BNP Paribas Arbitrage : 316,200 No of Shares
11. APS Far East Growth Fund : 12,600 No of Shares
12. APS Small Cap Alpha Fund : 97,495 No of Shares
13. The GMO Emerging Illiquid (Mauritius) Fund : 408,000 No of Shares
14. UBAM Equity Bric : 94,036 No of Shares
15. ABN Amro Mutual Fund A/C ABN Amro Equity Fund : 102,000 No of Shares
16. ABN Amro Mutual Fund A/C ABN Amro Tax Advantage Plan : 102,000 No of Shares
17. ABN Amro Mutual Fund A/C ABN Amro Opportunities Plan : 242,250 No of Shares
18. ABN Amro Mutual Fund A/C ABN Amro Future Leaders Plan : 76,949 No of Shares.

From the above announcement dated 14th Jan, 2008, it is very clear that Indian as well as foreign domestic mutual funds are very bullish on the stock which is only reason as they have participated and taken stake at Rs 310 per share. Against this backdrop, value investors are getting this hidden gem at throw away price of Rs.165 per share. Buy this stock at current levels with a clear target not to sell the stock unless one gets minimum 100% capital appreciation from the current levels

The management Targets a sales revenue of Rs 1000 crore for the FY 2008-09 and an EBIDTA margin of around 20%.I am very bullish on these company and its quoting at less than 2 PE of its 09-10 earnings.Has got a great payout ratio and its on a robust foothold.Accumulate the scrip at every levels

The company is a part of the Hira group and is the third largest manufacturer of coal based sponge iron in India. The company was a pioneer in registering its waste heat recovery boiler based power plant with the UNFCC to receive the benefits of CERs. GPIL currently has a capacity of 0.495mtpa sponge iron, 0.4mtpa billets, 0.12mtpa wire and 53MW of captive power plant of which 42MW is waste heat recovery based.The company has reported a PAT of Rs661.6mn for 9MFY08. We expect the company to better the results of FY08 in FY09 and FY10 on account of strong sponge iron pricing, higher capacity utilization and commencement of its capture iron ore mines.

Expansions done in FY07 to result in volume growth in FY08 onwards

The company has recently completed its expansion program where it increased its sponge

iron capacity from 235,000tpa to 495,000tpa. Further, it has also increased its power

generation capacity from 28MW to 53MW by setting up addition 25MW over the last 2 years.

GPIL has also increased its billets capacity from 250,000tpa to 400,000tpa and wire drawing capacity from 60,000tpa to 120,000tpa. We expect the company to reap the benefits of the expansion in FY09 and FY10.

Captive mines:

The company has been allocated 2 iron ore mines – Ari Dongri and Borai Tibbu on a single user basis. Both these mines are approximately 150kms from its sponge iron plant at Raipur. It has also been allocated 3 coal blocks in consortium. These coal blocks are under various stages of development and benefits from these coal mines are expected to start from FY10 onwards.

Iron Ore mines

Ari Dongri

The mine is spread over an area of 216hectare and is around 150km from the Raipur plant. The mine was previously being operated by Bhillai Steel plant (of SAIL). Post expiry of their 30yr lease, the mine was allocated to GPIL. The mine currently has an estimated reserve of 7-8mt with an Fe content of around 65%. The approach road to the mine is already built and the management does not expect significant capex in reopening this mine.

Borai Tibbu

This mine is spread across an area of 110-116hectare in Rajnandgaon district of Chhattisgarh and is approximately 150km from the plant. It has a proven reserves of around 6-7mt. However, the management expects the reserves to be higher than the proven reserves. The mine has around 62% Fe content. However, the fines generation is likely to be higher in this mine at around 50-60% of the output necessitating set up of a pelletization plant.

Land acquisition and statutory clearances

The company has received environmental clearance for both these mines and is now awaiting final clearance from the forest department. Once the forest clearance is received, the company expects to start mining within 4-6months from the clearance date. GPIL has already been allocated around 200hectares of land about 5 yrs ago hence the land acquisition cost has already been taken care of.

Additional prospecting license – Dhalli Rajhara

The company has recently received additional prospecting license for 754 hectares in Durg district. The mine is around 100km from the plant site. Since this patch of land has not been prospected before, it is difficult to put an exact number to the mineable resource. However, estimates by the company suggest the area could potentially have around 50mt of iron ore. The forest clearance of these mines is currently pending approval of ministry of environment and forests.LIMITED Management meet update

Coal Mines

GPIL has been awarded three coal blocks in consortium. The total mineable reserves of these coal blocks are 243mt of which the share of GPIL is around 63mt.

Coal block - Nakia I&II

The company has been a pioneer in forming JV to get allocation of coal mines in

“consortium”. It is the first consortium to be granted coal mining lease by the central

government, which has taken note of this method of joint allocation resulting in allocation of large blocks to meet the requirements of many small players. The company has formed a JV known as CCCMPL (Chhattisgarh Captive Coal Mining Company Pvt Ltd.) The JV is an association of 5 companies including GPIL and other listed and unlisted entities namely:

(1)GPIL, (2) Vandana Global, (3) Bajrang power & Ispat (4) Nakoda Ispat, (5) Ind Synergy. The consortium has been awarded a block in the coalfield Nakia I & II which has a total reserve of 198mt. the share of GPIL is around 26% in CCCMPL which translates into 51.5mt in this coal block.

The JV (CCCMPL) has also been allocated 2 coal blocks in consortium with other players. These blocks are Madanpur (North) and Madanpur (South).

Coal Block - Madanpur (N)

The Madanpur (North) has been allocated to a consortium of 8 players that include –

1) CCCMPL, (2) Sunflag Iron & Steel, (3) Ultratech Cement, (4) Nav Bharat Explosives, (5)Prakash Industries, (6) Anjani Steel (P) Limited, (7) Singhal Enterprises (8) Vandana Energy& Steel. The share of CCCMPL in this block is around 15mt of mineable reserve with an average “E” grade coal. The company expects the mining to start during FY11.

Coal Block - Madanpur (S)

The third mine is the Madanpur (South) where the CCCMPL has been granted the mining

lease in consortium with (1) CCCMPL, (2) Hindustan Zinc, (3) Sarda Energy & Minerals, (4) MSP Steel & Power, and (5) Akshay Ispat Udyog (P) limited. The share of CCCMPL in the mineable reserves stands at around 30mt having an average “E” coal grade. The company expects the mining from these blocks to start from 3QFY10.

Key facilities

Facilities metric FY09 and FY10

1 Sponge Iron tpa 495,000

2 Billets tpa 400,000

3 Power MW 53

4 Ferro Alloys tpa 16,500

5 Wire tpa 120,000

Additional facilities under 100% subsidiary – R R Ispat

6 Wire Rod tpa 100,000

7 Wire tpa 30,000

Valuation

The company has achieved a PAT of Rs661.6mn for 9MFY08. Given the strong ferro alloy cycle, the company expects to achieve a PAT of Rs960mn for FY08. As against this, the company currently has a cash balance of Rs1bn. The fully diluted equity of the company is likely to be around 29mn shares post all announced dilution including warrants issued to the promoters. We believe the captive mines can result in additional savings of more than Rs1bn once the company achieves 100% self sufficiency in iron ore and further Rs225mn on coal costs upon complete self sufficiency on coal. With the current fully diluted market capitalization of company at Rs7.13bn (assuming 29mn shares), the potential savings could be in the range of Rs1.2bn. We do not have coverage on the stock as of now, but are positive on the steel cycle and the ongoing expansion plans of the company. The company has already received iron ore and coal blocks allocation and forest clearance remains the only hurdle pending for the iron ore mine to start operations. The approach road to the iron ore mines and related infrastructure is already in place. The company has a very low gearing of 0.23x (on fully diluted market capitalization) and the stock has corrected almost 60% from the peak, we believe the stock can offer a strong investment opportunity. I POWER & ISPAT LIMITED Management meet update

All of above good news current price (165/-) is very very cheep.

Valuation of this Equity was 335/- as per above all information.

Just Buy at 165/- Hold 1 to 6 months time. You will get minimum 50% to 200% returns.

Enter current price at 165/- Target 250/- 320/- 440/-

Just Invest and get 50% to 200% profit.

Happy Investing... I will mail Next week with one more Recommedation.