As an investor, I find the stock market fascinating. It’s a world where market forces, financial reports, and investor feelings play a big role. CG Power and Industrial Solutions Limited has caught my eye. Its share price movements and strong financials make it a great investment to look into.
Key Takeaways
- CG Power’s share price has seen a 6.22% increase, reaching ₹733 in the latest trading session.
- The company’s strong financials include a market capitalization of ₹110,257.49 Cr, TTM PE of 75.30, and an impressive ROE of 47.29%.
- CG Power’s one-year performance stands at 59.82%, with a net profit of ₹871 Cr and net sales of ₹8,045 Cr.
- The company’s debt-to-equity ratio of 0.00 indicates a robust financial position within the industry.
- Peer comparisons highlight CG Power’s competitive edge, with superior financial metrics compared to industry leaders like Siemens, ABB India, and Havells India.
Introduction to CG Power
CG Power and Industrial Solutions Ltd. was once known as Crompton Greaves Ltd. It’s a top Indian maker of electrical products and solutions. The company has three main areas: Power Systems, Industrial Systems, and Consumer Products.
In the Power Systems area, CG Power makes transformers, switchgears, and power quality products. The Industrial Systems segment offers electric motors and electrical control panels. The Consumer Products segment includes fans, lamps, pumps, and household appliances. CG Power is a big name in the Indian electrical equipment market.
About the Company
CG Power and Industrial Solutions Ltd. is a well-known cg power company profile. It offers a wide range of products across power, industrial, and consumer sectors. The company’s cg power business segments and cg power market position make it a key player in the Indian electrical equipment market.
- Founded in 1937, CG Power has over 80 years of experience.
- The company focuses on innovation and technology, with a dedicated R&D center.
- CG Power’s manufacturing facilities are across India, with a global presence through subsidiaries and associates.
- The company’s commitment to quality and safety is shown in its certifications and accreditations, including ISO, OHSAS, and UL.
“CG Power’s diversified business model and strong market position make it a formidable player in the Indian electrical equipment industry.”
Key Financials of CG Power
Income Statement Highlights
CG Power’s financials show a mix of good and bad. The company’s revenue has grown at a CAGR of 37.95% over the last three years. This shows it’s good at finding new opportunities. But, profitability has been up and down, with net profit margins from 6.12% to 108.34% among its peers. CG Power’s earnings per share (EPS) was Rs. 9.59 in the latest year, showing strong earnings.
The company’s debt-to-equity ratio of 0.00 is impressive. It means CG Power has almost no debt. This financial smartness helps the company stay stable and grow.
| Financial Metric | FY 2020 | FY 2021 | FY 2022 |
|---|---|---|---|
| Basic EPS (Rs.) | -23.61 | 9.59 | 6.58 |
| Return on Networth (%) | 0.00% | 66.64% | 35.06% |
| Debt-to-Equity Ratio | -0.02 | -0.02 | 0.17 |
| PBT Margin (%) | -48.83% | 32.60% | 18.86% |
| Current Ratio | 0.46 | 1.10 | 1.80 |
CG Power’s financials are mostly good. It shows the company can keep revenue growth steady and stay financially strong. Its smart handling of debt and finances has helped it succeed lately.
cg power share price Analysis
Stock Performance Metrics
CG Power’s share price has seen a big jump, with a 3-year return of 660.06%. This is much higher than the Nifty 100 index’s 47.22% return. The company’s market value has soared to ₹1,05,385 crore, making it a top player in electrical equipment.
The stock’s valuation looks good too. It has a P/E ratio of 76.59 and a P/B ratio of 34.91. These numbers show the stock might be a bit pricey, but investors are still optimistic about its future. Also, CG Power’s stock beta of 1.68 means it’s more volatile than the market, which might attract bold investors.
| Metric | Value |
|---|---|
| 3-Year Stock Return | 660.06% |
| Nifty 100 Index Return | 47.22% |
| Market Capitalization | ₹1,05,385 crore |
| Price-to-Earnings (P/E) Ratio | 76.59 |
| Price-to-Book (P/B) Ratio | 34.91 |
| Stock Beta | 1.68 |
CG Power’s stock looks promising for those interested in the electrical equipment sector. But, it’s crucial to do your homework and talk to a financial advisor before investing.
Corporate Governance & Management
CG Power’s leadership is filled with seasoned professionals. The board of directors has Vellayan Subbiah as Chairman, Natarajan Srinivasan as Managing Director. M.A.M. Arunachalam, P.S. Jayakumar, and Sasikala Varadachari are non-executive and independent directors. This diverse cg power board of directors brings a wealth of experience and strategic insight.
The management team at CG Power is highly respected. They focus on maintaining strong cg power corporate governance practices. This ensures the company’s operations align with shareholder interests. Their commitment to cg power management team has boosted investor confidence and driven growth.
| Key Metrics | CG Power |
|---|---|
| ROCE | 37.64% |
| ROE | 54.31% |
| Dividend Payout Ratio | 65% – 75% |
The company’s financial health is a testament to its governance and management. High Return on Capital Employed (ROCE) and Return on Equity (ROE) show the team’s success in driving growth.
“CG Power’s commitment to corporate governance and its experienced management team have been instrumental in building investor confidence and driving the company’s success.”
Shareholding Pattern
CG Power’s shareholding pattern shows some interesting facts. As of June 2024, the company’s promoters own 58.09% of the shares. This shows their long-term commitment. Domestic institutional investors (DIIs) hold 14.64%, and foreign institutional investors (FIIs) have 11.07%. The rest, 16.19%, is with retail and other investors.
This balanced structure means all stakeholders’ interests are aligned. It’s a good sign for CG Power’s future. The presence of both domestic and foreign investors shows they believe in the company’s potential.
| Investor Category | Shareholding Percentage | No. of Shares |
|---|---|---|
| Individuals / Hindu Undivided Family | 0.04% | 587,160 |
| Tube Investments of India Limited (Promoter) | 58.02% | 886,485,532 |
| Mutual Funds | 7.12% | 108,740,630 |
| Foreign Portfolio Investors Category I | 14.09% | 215,276,040 |
| Individual share capital in excess of Rs. 2 Lacs | 4.55% | 69,577,034 |
| Bodies Corporate | 2.55% | 38,908,506 |
| Non Resident Indians (NRIs) | 0.42% | 6,389,009 |
Looking at the past year, we see more cg power institutional investors and cg power foreign investors. cg power retail investors also keep a steady share.
The shareholding of CG Power shows a balanced ownership. The promoters hold a big share, while others help with growth and stability.
Peer Comparison
To understand CG Power’s place in the electrical equipment industry, we must compare it with its cg power competitors and cg power industry peers. This cg power benchmarking helps us see how CG Power stacks up. It shows where the company shines or needs to get better.
CG Power faces tough competition from big names like Siemens, ABB India, Havells India, and Suzlon Energy. Looking at financial metrics like P/E ratio, P/B ratio, ROE, and revenue growth, CG Power stands out. It outperforms its rivals in many areas.
| Company | P/E Ratio | P/B Ratio | ROE (%) | Revenue Growth (CAGR) |
|---|---|---|---|---|
| CG Power | 76.59 | 34.91 | 71% | 37.95% |
| Siemens | 43.86 | 5.35 | 22.8% | 11.23% |
| ABB India | 48.15 | 10.34 | 24.6% | 9.87% |
| Havells India | 58.92 | 12.61 | 26.4% | 15.41% |
| Suzlon Energy | N/A | 0.81 | -27.1% | -3.76% |
The data shows CG Power’s P/E ratio of 76.59 and P/B ratio of 34.91 are higher than the industry average. This might mean the stock is more expensive. Yet, the company’s 71% 3-year ROE and 37.95% CAGR in revenue growth justify this premium. It shows CG Power’s solid financial health and growth potential.
This comparison shows CG Power’s strong position in the electrical equipment sector. It makes the company a leader among its cg power industry peers. This information is useful for investors and analysts looking to understand CG Power’s investment potential.
Company Strengths
CG Power & Industrial Solutions Ltd. (CG Power) is a big name in the Indian electrical equipment market. It has a wide range of products, a strong market spot, and solid finances. These strengths help the company grow as the Indian power and industrial sectors expand.
Diverse Product Offering and Technological Capabilities
CG Power serves many areas like power systems, industrial systems, and consumer products. This variety helps it meet different customer needs and reduce risks. Its strong brand, tech skills, and focus on new ideas keep it at the top in the Indian market.
Robust Financial Performance and Flexibility
CG Power has almost no debt and steady profits. This gives it the money to grow and explore new markets. Its financial health, shown by a 39% return on capital employed and strong cash flow, supports its growth plans.
Favorable Industry Positioning
The Indian power and industrial sectors are set for big growth. This is thanks to more electricity, better infrastructure, and the government’s green energy push. CG Power’s strong spot, diverse products, and tech lead make it ready to benefit from these trends.
CG Power’s strengths and growth chances make it a great pick for investors in the Indian electrical equipment market. It has the potential to give good returns to its shareholders in the future.
| Key Metrics | CG Power | Industry Average |
|---|---|---|
| Revenue Growth | 16% | 12% |
| Pre-tax Margin | 14% | 11% |
| Return on Equity (ROE) | 47% | 35% |
| Institutional Holding | 58.09% | 45% |
Investment Risks
Investors looking at CG Power should know about the risks. The company’s stock price has seen a lot of cg power market volatility. With a 3-year beta of 1.68, it’s more volatile than the average market.
This means CG Power’s shares might swing more, affecting the investment’s risk and reward. The cg power competitive landscape is also very competitive. CG Power faces threats from both local and international competitors.
Changes in the cg power regulatory environment could also affect the company. Investors need to think about these cg power investment risks when looking at CG Power.
“Investors should carefully consider these potential concerns when evaluating an investment in CG Power.”
CG Power has good growth prospects, but investors should be cautious. The volatility, competition, and regulatory issues could impact the company’s success. Knowing these cg power investment risks helps investors make better choices and manage risks.
Future Outlook
The future looks bright for CG Power & Industrial Solutions. The company has a strong market position and a diverse business model. It also benefits from favorable industry trends.
India’s growing demand for electricity will boost investments in power infrastructure. This is good news for CG Power, as it specializes in these areas.
CG Power is also focused on innovation and expanding into new markets. Its financial health and experienced management team are key strengths. They help the company face challenges and grow shareholder value over time.
Even though the stock is valued high, CG Power’s growth potential and leadership in the industry make it a good choice for long-term investors. The company’s recent acquisition of G.G. Tronics India adds to its market presence and revenue streams.
| Metric | Value |
|---|---|
| Operating Revenue | Rs. 8,399.50 Cr |
| Annual Revenue Growth Rate | 16% |
| Pre-tax Margin | 14% |
| Return on Equity (ROE) | 47% |
| Debt-free | Yes |
| Institutional Holding | Increased in last quarter |
| Cash from Operating Activity (March 2024) | Rs. 332 Cr |
| Net Profit (March 2023) | Rs. 785 Cr |
| Total Shareholders Funds (March 2024) | Rs. 3,245 Cr |
The cg power growth outlook, cg power industry trends, cg power business strategy, and cg power investment potential are compelling. They make CG Power an attractive choice for investors looking for long-term growth in the power and industrial solutions sector.
Analyst Recommendations
Most analysts covering CG Power say “Buy” the stock. They set a mean target price of Rs. 335, showing a possible gain of over 50%. They see the company’s diverse business, strong market spot, and growth chances as positives. They think CG Power’s tech investments, new product launches, and expansion will meet India’s growing electrical needs.
Yet, some analysts worry about the stock’s high price and risks from the economy and industry. Still, the general view is that CG Power is a good cg power investment rating chance. But, investors should think about the risks and benefits before deciding.
| Analyst | cg power target price | Rating | Price Target vs. Current Price |
|---|---|---|---|
| Geojit BNP Paribas | 642.00 | Sell | -11.09% |
| IDBI Capital | 654.55 | Buy | +11.51% |
| Geojit BNP Paribas | 625.00 | Hold | +25.84% |
| IDBI Capital | 615.00 | Buy | +45.33% |
| Geojit BNP Paribas | 417.00 | Sell | +61.71% |
The cg power analyst coverage shows CG Power has big upside potential. Most analysts suggest a “Buy” or “Hold” strategy. But, investors should think about the risks and rewards before investing.
Conclusion
CG Power is a top name in the Indian electrical equipment market. It has a wide range of products, a strong market position, and good financial health. The cg power investment summary shows the company’s stock price has gone up a lot lately.
This growth is thanks to its ability to take advantage of industry trends and stay ahead of competitors. Even though the stock is priced high, CG Power’s steady revenue growth, strong profits, and skilled management team suggest it’s on the right path.
The cg power stock analysis shows analysts are mostly positive about CG Power’s future. Most of them suggest buying the stock. For those looking to invest in India’s power and industrial sectors, CG Power is a good choice. But, it’s important to weigh the risks and rewards carefully before investing.
In summary, the cg power investment recommendation points to CG Power as a solid and financially stable company. It has the chance to give good returns to its shareholders in the long run. However, investors should do their homework and be okay with the company’s risk level.
FAQ
What is CG Power and Industrial Solutions Ltd.?
CG Power and Industrial Solutions Ltd. is a top maker of electrical products in India. It works in Power Systems, Industrial Systems, and Consumer Products.
What are the key financial metrics of CG Power?
CG Power’s revenue has grown a lot, with a 3-year CAGR of 37.95%. But, its profits have swung a lot, from 6.12% to 108.34% net profit margins. It has a good balance sheet, with a debt-to-equity ratio of 0.00.
How has CG Power’s share price performed?
CG Power’s share price has gone up a lot, with a 3-year return of 660.06%. This is more than the Nifty 100 index’s 47.22% return. Its market value is Rs. 1,05,385 crore, and its P/E and P/B ratios suggest it might be a bit pricey.
Who are the key members of CG Power’s management team and board of directors?
CG Power’s team is led by skilled people. Vellayan Subbiah is the Chairman, and Natarajan Srinivasan is the Managing Director. The board is diverse, focusing on good corporate governance.
What is the shareholding pattern of CG Power?
CG Power’s shares are well spread out. The promoters own 58.09%, domestic institutional investors have 14.64%, and foreign institutional investors have 11.07%. Retail and other investors hold 16.19%.
How does CG Power compare to its peers in the electrical equipment industry?
CG Power stands out among its peers. It has a higher P/E ratio, P/B ratio, and 3-year ROE. This suggests its premium valuation might be fair, given its strong profits and growth.
What are the key strengths and investment risks associated with CG Power?
CG Power’s strengths include a wide product range, strong market position, and solid finances. But, it faces risks like high stock volatility, tough competition, and possible regulatory changes.
What is the future outlook for CG Power?
CG Power’s future looks bright. India’s growing need for electricity and infrastructure, along with the company’s focus on innovation and expansion, are promising. Its strong finances also boost its growth outlook.
What are the analysts’ recommendations on CG Power’s stock?
Most analysts say “Buy” CG Power’s stock. They set a mean target price of Rs. 335, showing a potential gain of over 50% from today’s price.