Shares of multibagger CG Power and Industrial Solutions Ltd have rallied 4,822% in the last three years. The stock of the heavy electrical equipment maker, which closed at Rs 8.2 on July 28, 2020 ended at Rs 403.65 on July 28, 2023 on BSE. An amount of Rs 1 lakh invested in the CG Power stock three years ago would have turned into Rs 49.22 lakh today. In comparison, Sensex has risen 71.88 per cent during the period.
CG Power stock opened higher at Rs 400 in the previous session. On July 19, the stock touched its all-time high of Rs 424.95 on BSE. The stock hit its 52-week low of Rs 212.30 on September 7, 2022. Total 1.09 lakh shares of the firm changed hands amounting to a turnover of Rs 4.39 crore in Friday’s session. Market cap of the firm rose to Rs 61,646 crore on BSE. The stock closed 1.66% higher at Rs 403.65 in the same session.
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15 promoters held 58.12 per cent stake in the firm and 1,76,195 public shareholders owned 41.88 per cent for the quarter ended June 2023. Of these, 1,68,257 resident individuals held 8.12% stake or 12.39 crore shares with capital up to Rs 2 lakh. Only 206 resident individuals with 5.56% stake or 8.49 crore shares held capital above Rs 2 lakh for the quarter ended June 2023.
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24 mutual funds held 6.80 crore shares in the firm at the end of June quarter. 523 FPIs owned 15.94% stake or 24.34 crore shares in the power equipment firm in th last quarter.
In terms of technicals, the relative strength index (RSI) of CG Power stands at 57.5, signaling it's trading neither in the overbought nor in the oversold zone. CG Power stock has a one-year beta of 0.8, indicating average volatility during the period. CG Power shares stand higher than the 5 day, 20 day, 50 day, 100 day and 200 day but lower than the 10 day moving averages.
In the June 2023 quarter, the firm reported a 57 per cent rise in its net profit at 203.84 crore boosted by higher income. The firm had reported a Rs 129.93 crore net profit in the April-June quarter of the preceding fiscal.
Total income rose 15% to Rs 1,896.15 crore in Q1 from Rs 1,651.95 crore in the year-ago quarter. However, expenses climbed to Rs 1,633.59 crore in the first quarter against Rs 1,485.29 crore a year ago.
Nuvama Institutional Equities said, “CG Power reported a strong all-round performance across segments largely in line with Street’s EBITDA/PAT expectations (-5%/-2%). Fresh orders grew 24.2% YoY to Rs 2020 crore, taking the backlog to Rs 4900 crore (33.7% YoY).With capacities having ample domestic orders, we expect exports (potential of Rs 2500 crore ) ramping up by FY25.”
On March 3 this year, CG Power previously known as Crompton Greaves Limited, announced paying dividend to its shareholders. The company’s board approved the payment of 75 per cent dividend per equity share -- its first interim dividend for the last fiscal. CG Power said that it would pay Rs 1.50 dividend per equity share bearing a face value of Rs 2.
CG Power engaged in the providing end-to-end solutions to utilities, industries and consumers for the management and application of electrical energy. The Company offers products, services and solutions through two segments: Power Systems and Industrial Systems. Its power systems segment includes transformers, switchgear, automation and turnkey projects. Its industrial systems segment includes electric motors, alternators, drives, traction electronics and supervisory control and data acquisition systems (SCADA).
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