CG Power and Industrial Solutions Limited was listed on the NSE on March 1, 1995. In the last five years, the stock has given a massive return of more than 8000%. Will CG Power continue to provide such great returns in the future as well? Let’s explore CG Power’s growth potential and CG Power share price target from 2025 to 2050 in this article.
About CG Power
CG Power and Industrial Solutions Limited, formerly Crompton Greaves Limited, was founded on April 28, 1937, by R.E.B. Crompton and James Greaves. It develops, manufactures, and markets products for power generation, transmission, and distribution, as well as rail transportation. In 2020, the Murugappa Group acquired a majority stake in the company.
CG Power Business Model
- Selling Electrical Equipment: CG Power manufactures and sells electrical equipment such as transformers, circuit breakers, and switches.
- Manufacturing Industrial Motors: The company manufactures motors for industries such as steel, cement, oil, and gas.
- Providing Power Solutions: CG Power provides comprehensive electrical solutions to businesses. This includes developing, implementing, and maintaining power systems.
- Supplying to Government & Private Projects: CG Power supplies electrical equipment for government projects like power plants, railways, and metro systems, as well as private companies.
CG Power Fundamental Analysis
| Stock Name | CG Power & Industrial Solutions Ltd. |
|---|---|
| NSE Symbol | CGPOWER |
| Market Cap | ₹ 93321 Cr. |
| 52W High | ₹ 875 |
| 52W Low | ₹ 462 |
| Stock P/E | 99.6 |
| Book Value | ₹ 23.0 |
| Dividend Yield | 0.21 % |
| ROCE | 46.6 % |
| ROE | 57.8 % |
| Face Value | ₹ 2.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 58.12% | 58.11% | 58.06% |
| FIIs | 15.39% | 15.18% | 14.30% |
| DIIs | 7.17% | 10.09% | 11.91% |
| Public | 19.32% | 16.61% | 15.73% |
| No. of Shareholders | 1,73,059 | 2,58,587 | 4,70,500 |
Key Factors Driving CG Power Future Growth
- Strong Demand for Electrical Equipment: CG Power benefits from increased demand for transformers, switchgear, and motors as a result of business growth and infrastructure development.
- Government Support for the Energy Sector: Policies promoting electricity distribution, renewable energy, and grid updating open up new opportunities for CG Power.
- Renewable Energy Growth: The shift to solar and wind power increases the demand for electrical infrastructure, which benefits CG Power’s business.
- The growth into Global Markets: CG Power is expanding its presence in international markets, resulting in increased sales and revenue growth.
- Technological Advancements: CG Power’s investments in advanced electrical solutions help it remain competitive and attract new customers.
- Industrial Growth and The development: Rapid industry and urban expansion increase the demand for dependable electrical infrastructure, which benefits CG Power.
- Rising Investments in Rail and Metro Projects: CG Power provides electrical components for railway and metro projects, resulting in consistent business growth.
Pros of CG Power
- Strong Sales Growth: CG Power has achieved a strong sales growth of 40% CAGR over the last three years.
- Strong Profit Growth: CG Power has achieved a strong profit growth of 141% CAGR over the last three years.
- High Return on Capital Employed (ROCE): CG Power has maintained an average ROCE of 30.8% over the last five years, which shows that the CG Power is using its capital efficiently to generate profit.
- Debt Free Company: CG Power is almost debt free company with a debt to equity ratio of 0.01, which shows its financial stability.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 11.91% in December 2024 from 11.43% in September 2024, which indicates growing confidence in the Cg Power future potential by the DIIs.
Cons of CG Power
- High Price to Book Value: CG Power is trading at a Price-to-Book Value (P/B) ratio of 27.1, which indicates that its stock is significantly overvalued compared to its assets.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 14.30% in December 2024 from 14.58% in September 2024, indicating a decline in FII’s confidence in the CG Power’s future growth prospects.
| Years | Target Price |
|---|---|
| CG Power Share Price Target 2025 | ₹760 to ₹945 |
| CG Power Share Price Target 2026 | ₹915 to ₹1230 |
| CG Power Share Price Target 2027 | ₹1100 to ₹1600 |
| CG Power Share Price Target 2028 | ₹1310 to ₹2100 |
| CG Power Share Price Target 2029 | ₹1600 to ₹2700 |
| CG Power Share Price Target 2030 | ₹1900 to ₹3500 |
| CG Power Share Price Target 2035 | ₹3800 to ₹10500 |
| CG Power Share Price Target 2040 | ₹7500 to ₹30000 |
| CG Power Share Price Target 2050 | ₹30000 to ₹190000 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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