CG Power shares surge 7% to hit all-time high; here's what analysts say

CG Power and Industrial Solutions Ltd shares rose sharply in Tuesday's trade to scale their record high levels. The stock jumped 6.91 per cent to hit an all-time high of Rs 584.90. Later, the stock gave up a major chunk of its gain and was last seen trading 1.93 per cent higher at Rs 557.65.

The company reported a 10 per cent dip in consolidated net profit to Rs 234 crore for March quarter FY24 (Q4 FY24) as against Rs 260 crore in the year-ago period. Although, total income rose to Rs 2,239.83 crore in Q4 FY24 from Rs 1,917.05 crore in the year-ago period.

Consolidated net profit (from continuing operations) rose to Rs 871 crore in fiscal 2023-24 from Rs 796 crore in 2022-23. Total income in the fiscal increased to Rs 8,152.24 crore from Rs 7,040.30 crore a year ago.

Nuvama Institutional Equities has given a 'Buy' call on CG Power shares with a target price of Rs 640. "The company reported Rs 2,190 crore consolidated revenue for Q4 FY24 (+15 per cent YoY), mainly led by power, up 39 per cent YoY while industrial grew merely 5 per cent YoY as motors de-stocking continued for a second quarter in a row (along expected lines)," it stated.

Technical analysts largely remained positive on the counter. Key support levels are Rs 570, Rs 555 and Rs 545. On the higher side, CG Power's stock has potential to climb up to Rs 635 in the near term. That said, one of the analysts also recommended booking profits at current levels.

"The counter looked positive on charts. It has potential to hit a near-term target of Rs 600. It is currently hovering near lifetime highs. One can accumulate this stock around Rs 555," Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, told Business Today TV.

"CG Power continues to stay in trend. Expected near-term targets are between Rs 600 and 630," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

The stock looked strong on charts, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. "It could see Rs 610 level in the near term. Keep stop loss placed at Rs 570, Singh mentioned.

"Support will be at Rs 555 and resistance at Rs 585. A decisive close above the Rs 585 level may trigger a further upside till Rs 600. The expected trading range will be between Rs 545 and Rs 612 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"CG Power is bullish but also very overbought on daily charts with next resistance at Rs 603. Investors should keep booking profits as a daily close below support of Rs 555 could lead to target of Rs 480 in the near term," said AR Ramachandran from Tips2trades.

"After a consolidation breakout, CG Power appears poised for a rally in the near term. It has potential to reach Rs 635. Support is situated at Rs 545," said Rupak De, Senior Technical Analyst at LKP Securities.

The company is a part of the Rs 74,200 crore Murugappa Group. As of March 2024, promoters held a 58.11 per cent stake in CG Power.