CG Power & Industrial Solutions Ltd (CGPOWER) AI Stock Analysis

• Market Cap: ₹938.22B
• Dividend Yield: 0.2%
• Average Volume (3M): 120.24K
• Price to Earnings (P/E): 85.9
• Beta (1Y): 1.51
• Revenue Growth: 25.63%
• EPS Growth: -26.61%
• Country: IN
• Employees: 3,113
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.82
• Shares Outstanding: 1,574,862,500
• 10 Day Avg. Volume: 123,832
• 30 Day Avg. Volume: 120,238
• PEG Ratio: -3.05
• Price to Book (P/B): 24.48
• Price to Sales (P/S): 9.50
• P/FCF Ratio: 181.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹811.00
• Price Target Upside: 25.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹680.00 ▲(5.38% Upside)

CG Power's strong financial performance is the most significant factor, supported by robust revenue growth, profitability, and a solid balance sheet. Technical analysis indicates a positive trend, although valuation concerns due to a high P/E ratio and low dividend yield temper the overall score.

Positive Factors

Sustained Revenue Growth

CG Power has delivered consistent, double-digit top-line growth (latest annual increase 23.1%), indicating durable demand across its transformer, switchgear and services portfolio. Sustained revenue expansion supports scale, market share gains and long-term reinvestment capacity.

Healthy Margin Profile

A roughly 30% gross margin and improving net, EBIT and EBITDA margins indicate structural cost competitiveness and operational leverage. Robust margins enhance resilience to input cost volatility, permit reinvestment in R&D and capex, and underpin sustainable profitability over time.

Strong Cash Generation and Conversion

Very high operating cash conversion (OCF/net income ~0.97) and positive free cash flow conversion point to efficient working capital and capital allocation. Reliable cash generation supports capex, debt reduction and strategic investments without relying on external financing.

Negative Factors

Negative EPS Trend

Reported EPS growth is negative (-26.6%), which weakens per-share earnings momentum despite revenue and margin improvements. A declining EPS trend can constrain long-term shareholder returns and raise questions about earnings quality or one-off impacts on reported results.

Exposure to Cyclical End Markets

Core markets like power and rail are capital-expenditure driven and cyclical; demand timing depends on infrastructure budgets and project cycles. This structural exposure can cause revenue and order volatility over multi-quarter horizons despite long-term secular demand drivers.

Above-Average Market Volatility

A beta materially above 1 indicates higher sensitivity to macro and market swings. For a capital-intensive electrical equipment manufacturer, elevated volatility can increase perceived risk, raise financing costs intermittently and complicate stable long-term capital planning.

CG Power & Industrial Solutions Ltd Business Overview & Revenue Model

Company Description

CG Power and Industrial Solutions Limited provides various solutions to utilities, industries, and consumers for the management and application of electrical energy in India and internationally. The company operates through Power Systems and Industrial Systems segments. The Power Systems segment offers power and distribution transformers, switchgears, circuit breakers, instrument transformers, lightning arrestors, isolators, and vacuum interrupters. It also undertakes design, products, procurement, construction, erection, and servicing of turnkey transmission and distribution projects, as well as substation projects. The Industrial Systems segment provides motors, AC generators, drives and automation, soft starters and shaft power monitors, heat exchanger drives with switched reluctance motors, domestic and commercial fans, traction electronics and traction machines for railway transportation, railway signaling equipment, and stampings and laminations, as well as residential, agricultural, and specialty pumps. It also offers services and refurbishment of large rotating machines. The company was formerly known as Crompton Greaves Limited and changed its name to CG Power and Industrial Solutions Limited in February 2017. CG Power and Industrial Solutions Limited was incorporated in 1937 and is headquartered in Mumbai, India.

How the Company Makes Money

CG Power & Industrial Solutions Ltd generates revenue through multiple streams primarily centered around the manufacturing and sale of electrical equipment. Key revenue streams include the production and sale of transformers, switchgear, and electric motors, which are integral to power generation, transmission, and distribution. Additionally, the company offers engineering and consulting services that help clients optimize energy usage and implement automation solutions. Significant partnerships with utility companies, government projects, and private sector clients further bolster its revenue. The company's focus on renewable energy solutions also opens up new avenues for income, aligning with global trends towards sustainability and energy efficiency.

CG Power & Industrial Solutions Ltd Financial Statement Overview

Summary

CG Power has demonstrated substantial growth in revenue and profit margins, reflecting efficient operations and a solid market position. The company maintains a robust balance sheet with low leverage, high equity, and excellent returns on equity. Cash flow analysis further supports the view of strong financial health, with high cash generation and effective capital use.

Income Statement

CG Power has shown a strong improvement in revenue and profitability over the years. The gross profit margin is healthy at approximately 30% for the most recent year, and their net profit margin has increased significantly from previous years, indicating efficient cost management. The company exhibited consistent revenue growth, with the latest annual increase at 23.1%. Both EBIT and EBITDA margins have improved, demonstrating operational efficiency.

Balance Sheet

The balance sheet shows a solid financial position with a low debt-to-equity ratio of 0.01, indicating minimal leverage risk. The equity ratio of 51.8% highlights a strong capital structure. Return on equity is robust at 25.4%, showcasing the company's ability to generate returns for shareholders. The company has reduced its debt significantly over the years, strengthening its equity base.

Cash Flow

Cash flow analysis reveals strong operational cash generation with a high operating cash flow to net income ratio of 0.97. Free cash flow has grown substantially, signaling effective capital management and increased financial flexibility. The free cash flow to net income ratio of 0.53 indicates good cash conversion from profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	105.59B	99.09B	80.46B	69.73B	54.84B	29.64B
Gross Profit	31.15B	29.40B	24.49B	20.74B	15.46B	9.63B
EBITDA	13.08B	12.74B	10.97B	9.63B	5.97B	638.50M
Net Income	10.03B	9.75B	14.27B	9.63B	9.13B	12.95B
Balance Sheet
Total Assets	0.00	74.17B	56.26B	46.69B	42.26B	44.02B
Cash, Cash Equivalents and Short-Term Investments	16.69B	16.96B	14.50B	7.14B	5.30B	5.18B
Total Debt	0.00	409.70M	175.60M	165.50M	3.67B	14.84B
Total Liabilities	-40.38B	33.79B	26.07B	28.78B	32.22B	44.86B
Stockholders Equity	40.38B	38.44B	30.17B	17.91B	10.03B	-847.00M
Cash Flow
Free Cash Flow	0.00	5.17B	1.63B	8.61B	4.11B	-2.60B
Operating Cash Flow	0.00	9.44B	3.97B	9.47B	4.85B	-2.42B
Investing Cash Flow	0.00	-5.68B	-6.62B	-206.90M	2.27B	-483.20M
Financing Cash Flow	0.00	-1.67B	-2.46B	-6.12B	-8.00B	5.90B

CG Power & Industrial Solutions Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 645.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CGPOWER, the sentiment is Negative. The current price of 645.3 is below the 20-day moving average (MA) of 650.94, below the 50-day MA of 683.08, and below the 200-day MA of 684.82, indicating a bearish trend. The MACD of -17.51 indicates Positive momentum. The RSI at 23.22 is Positive, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CGPOWER.

CG Power & Industrial Solutions Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APARINDS	74 Outperform	₹328.63B	34.98	―	0.57%	21.16%	8.27%
RRKABEL	74 Outperform	₹170.57B	42.25	―	0.49%	17.36%	52.81%
CGPOWER	72 Outperform	₹938.22B	85.92	―	0.20%	25.63%	-26.61%
POLYCAB	72 Outperform	₹1.16T	46.97	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹919.24B	62.81	―	0.70%	7.26%	3.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KEI	63 Neutral	₹413.85B	51.94	―	0.09%	22.68%	20.52%

CG Power & Industrial Solutions Ltd Corporate Events

CG Power Reshuffles Top Leadership in Railway Business

CG Power and Industrial Solutions has announced a change in its senior management, with Vice President – Railways, Chidambaram Balakrishnan, resigning from the company effective close of business on 1 January 2026 due to personal reasons. He will be succeeded by Dhananjay Bapat, who has been appointed Vice President – Railway Business from 2 January 2026, bringing 27 years of experience across manufacturing, sales, marketing, product, service and P&L management; the move underscores the company’s focus on maintaining continuity and strengthening leadership in its railway segment, which is strategically significant for its industrial and infrastructure clientele.

CG Power Reshuffles Senior Management in Railway Business

CG Power and Industrial Solutions Limited has announced changes in its senior management, specifically within its railway-focused business. Vice President – Railways, Chidambaram Balakrishnan, has resigned from the company effective at the close of business on 1 January 2026 due to personal reasons, and consequently ceases to be part of the senior management team. Effective 2 January 2026, the company has appointed industry veteran Dhananjay Bapat as Vice President – Railway Business, bringing 27 years of experience in manufacturing, sales, marketing, product, service and P&L management across multiple sectors, along with strong credentials in commercial leadership and process-driven productivity improvements, signalling a continuity and potential strengthening of the company’s railway business leadership.

CG Power Allots 5,000 Equity Shares Under ESOP 2021, Marginally Raises Paid-Up Capital

CG Power and Industrial Solutions Limited has allotted 5,000 fully paid equity shares of face value Rs 2 each under its Employee Stock Option Plan 2021 at an exercise price of Rs 156.20 per share to an eligible employee. Following this allotment, the company’s paid-up equity share capital has risen marginally from Rs 3,14,97,25,218 to Rs 3,14,97,35,218, comprising 1,57,48,67,609 equity shares, slightly expanding the equity base and reflecting ongoing use of stock options as part of its employee compensation strategy.

CG Power Allots 40,000 Shares Under ESOP 2021

CG Power & Industrial Solutions Ltd has announced the allotment of 40,000 equity shares under its Employee Stock Option Plan 2021. This move increases the company’s paid-up equity share capital, reflecting its commitment to rewarding and retaining talent through stock options, which may enhance employee motivation and align their interests with corporate goals.

CG Power Receives Warning for Delayed Disclosure on Promoter Reclassification

CG Power & Industrial Solutions Ltd has received warning letters from the National Stock Exchange of India and Bombay Stock Exchange regarding a delay in the disclosure of a material event related to the reclassification of promoters under SEBI regulations. The company acknowledged the delay and committed to ensuring compliance with SEBI regulations in the future, highlighting the importance of timely disclosures to maintain regulatory standards.

CG Power Secures Approval for Promoter Group Reclassification

CG Power & Industrial Solutions Ltd has announced that the National Stock Exchange of India Limited and BSE Limited have granted no objection for the reclassification of Yanmar Coromandel Agrisolutions Pvt. Ltd. and Coromandel Engineering Company Limited from the Promoter Group category. This move is part of the company’s strategic efforts to streamline its organizational structure, potentially impacting its market positioning and stakeholder relationships.

G.G. Tronics Advances Uniform Braking Algorithm for Indian Railways

G.G. Tronics India Private Limited announced significant progress in developing the Uniform Braking Algorithm for Indian Railways, which aims to ensure consistent braking performance across vendors. Despite the cancellation of an order from Chittaranjan Locomotive Works due to approval delays, GGT remains qualified for future tenders and expects to participate in bulk procurement with enhanced capabilities.

CG Power Releases Investor Call Transcript

CG Power & Industrial Solutions Ltd has announced that the transcript of its recent conference call with analysts and investors, held on October 29, 2025, has been made available on the company’s website. This move reflects the company’s commitment to transparency and open communication with stakeholders, potentially enhancing investor confidence and market perception.

CG Power Reports Record Q2FY26 Performance with Strong Growth

CG Power & Industrial Solutions Ltd reported a robust financial performance for the second quarter and half-year ending September 30, 2025, showcasing significant growth driven by strategic transformation and disciplined execution. The company achieved record standalone revenue and profit before tax, with sales increasing by 17% year-on-year, order intake growing by 32%, and profit after tax rising by 38%. The strong order backlog of INR 13,568 Cr ensures multi-quarter visibility, highlighting the company’s strengthened market position and promising future prospects.

CG Power Schedules Earnings Call for Q2FY26 Results

CG Power and Industrial Solutions Limited has announced an upcoming earnings call scheduled for October 29, 2025, to discuss its financial results for the quarter and half-year ending September 30, 2025. This event will provide an opportunity for analysts and institutional investors to engage with the company’s management, potentially impacting stakeholders’ perceptions and the company’s market positioning.