CG Power & Industrial Solutions
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
CG Power & Industrial Solutions is poised for significant growth, driven by a robust order backlog and aggressive capacity expansion in its Power Systems and Switchgear divisions. Management's optimistic outlook is supported by a projected revenue CAGR of 28.9% and EBITDA CAGR of 39.4% through FY29E, with margins expected to expand to 16.5%. The company's strategic focus on scaling its semiconductor business, despite near-term challenges, positions it well for long-term growth. Additionally, the favorable macro environment, characterized by increased private sector capex and government initiatives, enhances CG Power's competitive position. However, the company faces headwinds from intensifying competition, particularly from Chinese firms, and potential supply chain disruptions. Over the next 12-24 months, key opportunities include capitalizing on the growing demand for automation solutions and expanding its export footprint, while watchpoints include managing margin pressures and execution risks in its semiconductor venture
Why We Like This Stock
- Strong order backlog and aggressive capacity expansion are expected to drive significant revenue and margin growth
- Management's focus on the semiconductor business is anticipated to yield long-term benefits, enhancing CG Power's market position
- Favorable macroeconomic conditions, including increased private sector capex, support the company's growth trajectory
Things To Watch Out For
- Intensifying competition from Chinese firms may pressure margins and market share
- Execution risks related to the semiconductor business could impact profitability in the near term
- Potential supply chain disruptions may affect production timelines and operational efficiency
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,046 | 9,909 | 12,418 | 12,558 | 14,326 |
| Profit Before Tax (Cr.) | 1,113 | 1,312 | 1,592 | 1,637 | 1,931 |
| PBT Margin | 13.8% | 13.2% | 12.8% | 13.0% | 13.5% |
| Net Profit (Cr.) | 1,670 | 1,137 | 1,172 | 1,211 | 1,429 |
| Earnings Per Share | 10.6 | 7.2 | 7.4 | 7.7 | 9.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 990 | 07-Sep-2026 |
| Motilal Oswal | ▲ Buy | 1,020 | 03-Sep-2026 |
| Citigroup | ▲ Buy | 1,100 | 27-Jul-2026 |
| Emkay Global | ▲ Buy | 925 | 27-Jul-2026 |
| Jeffries | ► Hold | 855 | 27-Jul-2026 |
| Kotak Securities | ▼ Sell | 630 | 27-Jul-2026 |
| Macguire | ▲ Outperform | 1,090 | 27-Jul-2026 |
| Morgan Stanley | ▲ Buy | 1,100 | 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. It operates through the Power Systems, Industrial Systems, Semiconductors, and Others segments. The company offers power and distribution transformers; switchgears, including high and extra-high voltage, medium voltage, power quality, and relays and automation products; motors comprising fractional horse power motors, large industrial machines, low tension motors, and stampings and laminations; and drives and automation products that include variable frequency drives, modular converters, soft starters, and shaft power monitors. It also provides railway products, including traction machines and systems, rail transportation traction electronics, and railway signaling products, as well as BLDC industrial fans and control panels for locomotives. In addition, the company offers semiconductor design, outsourced semiconductor assembly and testing, and turnkey solutions. Further, it engages in the manufacture and dealing in specialty adhesive tapes and labels; manufacture, sale, maintenance, and repair of electronic devices and facilities in drive technology; development, production, and marketing of inverter products; and design, manufacture, supply, and installation of electronic safety embedded signaling systems for the railway transportation sector. 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 founded in 1878 and is headquartered in Mumbai, India. CG Power and Industrial Solutions Limited operates as a subsidiary of Tube Investments of India Limited.