CG Power & Industrial Solutions is a global company that offers end-to-end solutions to utilities, businesses, and consumers for the management and use of efficient and sustainable electrical energy. It provides products, services, and solutions in two major business segments: Power Systems and Industrial Systems.
With a market capitalization of Rs 71,349.37 crore, the shares of CG Power and Industrial Solutions Ltd were trading at Rs 467.15 per share, increased around 0.27 percent as compared to the previous closing of Rs 465.90 apiece.
The stock has given an impressive return of 947 percent in the previous three years, which indicates that an investor’s investment of Rs 1 lakh now will be Rs 10.45 lakh in three years.
As of December 31, 2023, the company’s unexecuted order book was at Rs. 1,982 crores, representing a 9 percent YoY rise. In the interim budget for 2024, the finance minister recommended increasing capital spending to Rs. 11.11 lakh crore. This will support CG’s expansion in the cement, steel, and related industries.
Furthermore, the government’s emphasis on energy efficiency will increase demand for higher energy-standard motors such as IE3 and IE4. Government energy efficiency standards may significantly increase demand for these motors.
CG Power and Industrial Solutions Ltd has continually grown its sales, which climbed by 12 percent from Rs 1,752 crore in Q3FY23 to Rs 1,979 crore in Q3FY24. During the same time frame, net profit climbed by 228 percent, from Rs 228 crore to Rs 748 crore.
In the recent month of 2024, the company plans to build an outsourced semiconductor assembly and test facility (OSAT) in India in a joint venture with Japanese Renesas Electronics Corporation and Thailand-based Stars for an investment of Rs 7600 crore over a five-year period, which will be financed through a mix of subsidies, equity, and potential bank borrowings as needed.
In conclusion, CG Power & Industrial Solutions demonstrates strong performance, with substantial growth in sales and profitability.
Its strategic expansion plans, aligned with government initiatives for energy efficiency and increased capital spending, position the company for continued success in providing sustainable electrical energy solutions to various sectors.
Written by:- Abhishek Singh
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