CG Power & Industrial Solutions
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
CG Power & Industrial Solutions is strategically positioned to leverage India's infrastructure momentum and the global energy transition, as highlighted by management's focus on aggressive capacity expansion and entry into the semiconductor space. The company reported a record performance in FY26, driven by a robust order book and significant growth in its Power Systems segment. However, challenges such as execution risks in the semiconductor vertical and competitive pricing pressures in the Industrial Systems segment could impact margins. Vista's financial outlook reflects a revenue CAGR of 28.9% and EBITDA CAGR of 39.4% through FY29E, supported by strong domestic demand and government initiatives. The anticipated commissioning of new facilities and a focus on operational excellence are expected to enhance margins, despite potential volatility from raw material costs. The automation industry's growth, driven by increased capital expenditure, further supports CG Power's outlook. Over the next 12-24 months, key opportunities include expanding into high-growth sectors like data centers, while watchpoints include execution risks in new ventures and competitive pressures affecting pricing and margins
Why We Like This Stock
- Aggressive capacity expansion in Power Systems and entry into the semiconductor market provide strong growth potential
- A robust order book and government-led infrastructure initiatives enhance revenue visibility
- Management's focus on operational excellence and pricing discipline supports margin stability
Things To Watch Out For
- Execution risks associated with the semiconductor business could hinder profitability
- Competitive pricing pressures in the Industrial Systems segment may impact margins
- Volatility in raw material costs poses a risk to maintaining stable profit margins
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,046 | 9,909 | 12,418 | 12,610 | 15,515 |
| Profit Before Tax (Cr.) | 1,113 | 1,312 | 1,592 | 1,622 | 2,080 |
| PBT Margin | 13.8% | 13.2% | 1282.0% | 12.9% | 13.4% |
| Net Profit (Cr.) | 1,670 | 1,137 | 1,172 | 1,201 | 1,540 |
| Earnings Per Share | 10.6 | 7.2 | 7.4 | 7.6 | 9.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▲ Buy | 1,100 | 27-Jul-2026 |
| Emkay Global | ▲ Buy | 925 | 27-Jul-2026 |
| Jeffries | ► Hold | 855 | 27-Jul-2026 |
| Macguire | ▲ Outperform | 1,090 | 27-Jul-2026 |
| Morgan Stanley | ▲ Buy | 1,100 | 27-Jul-2026 |
| Motilal Oswal | ▲ Buy | 975 | 27-Jul-2026 |
| Nomura | ▲ Buy | 1,100 | 27-Jul-2026 |
| UBS | ▲ Buy | 1,070 | 27-Jul-2026 |
| Ventura | ▲ Buy | 1,008 | 26-May-2026 |
Company Overview
Show Company Profile
CG Power and Industrial Solutions Limited, together with its subsidiaries, provides various solutions in India and internationally. The Power Systems segment offers generator, distribution, solar, green, unit auxiliary, furnace, cast resin, locomotive, and track side transformers; shunt reactors; and switchgears, relay and automation, circuit breakers, condenser bushings, lightning and surge arresters, off load disconnectors, isolators, compact substations, numerical protection relays, auto-reclosers, vacuum interrupters, power quality solutions, and railways loco head and trackside products. This segment also undertakes turnkey transmission and distribution projects; and substation projects. The Industrial Systems segment provides traction motors, AC generators, drives and automation solutions, soft starters and shaft power monitors, domestic and commercial fans, traction electronics and machines, water heaters, and services for industrial systems, as well as residential, agricultural, and specialty pumps. The Semiconductors segment engages in the outsourced semiconductor assembly and test; and radio frequency business. The Others segment offers adhesive tapes and labels. It serves steel and metals, cement, textile, fertilizer, chemical, oil and gas refineries, sugar, automobile, FMCG, electronics, building and infrastructure, defense, paper, pharmaceutical, metro rail, railways, thermal, nuclear power, mining, data centers, IT and telecom, green hydrogen, water and irrigation, power transmission and distribution, and port and shipping sectors, as well as renewables, such as solar, floating solar, wind, and hydro industries. The company was formerly known as Crompton Greaves Limited and changed its name to CG Power and Industrial Solutions Limited in February 2017. The company was incorporated in 1937 and is headquartered in Mumbai, India. CG Power and Industrial Solutions Limited operates as a subsidiary of Tube Investments of India Limited.