Target: ₹968

CMP: ₹879.20

CG Power and Industrial Solutions (CG Power) develops and distributes electrical equipment such as transformers, reactors and other control equipment, and also manufactures industrial motors and pumps and communication systems.

Its consolidated revenue grew 25 per cent to ₹3,442 crore in Q4FY26. Revenue in the power systems segment grew 49.7 per cent to ₹1,487 crore, supported by a strong demand momentum and execution discipline, leading to higher project deliveries. Industrial systems revenue rose 2.3 per cent to ₹1,791 crore, led by growth in motors/ drives, partly offset by intense competition and a higher proportion of lower-margin railways orders. EBITDA rose 30 per cent to ₹ 544 crore and margin improved 60 bps to 15.8 per cent, . Reported profit after tax increased 31.8 per cent to ₹36 crore, supported by higher revenue and improved operating leverage.

Power systems continues to lead the overall performance on the back of robust execution and sustained domestic and global demand for transformers/switchgear, with the order-book remaining strong, aided by large utility and export-wins. Industrial systems performance is expected to improve gradually, supported by traction in the motors business (benefitting from pricing discipline) and better execution in railways. Therefore, we upgrade our rating to BUY from HOLD with a rolled-forward target price of ₹968, implying a valuation of 72.0x FY28E adjusted EPS.

Published on May 26, 2026