Shares of CG Power and Industrial Solutions hit record highs of Rs 230 on Friday as BSE shares rose 4% in intraday trade. It has risen 13% in heavy trading over the past two sessions. Additionally, over the past month, it has surged 30% on the back of a strong business outlook. By contrast, the S&P BSE Sensex rose 8% over the same period.

Today’s OTC volume has nearly quadrupled compared to the average daily volume over the past two weeks. A total of 5.4 million shares on the NSE and BSE had changed hands at 1.22 pm.

CG Power is a company that manufactures electric motors, generators, transformers, and power distribution and control equipment. The company also manufactures other electrical equipment.

There are multiple growth opportunities across all of the company’s businesses. The industrial business is poised for continued organic growth, given the heavy investment in the infrastructure sector and the start of the Capex cycle. Furthermore, the electric vehicle (EV) segment is another major opportunity to cater to in the coming years.

CG Power said in its FY22 annual report: “In the railway business, the Ministry of Railways has announced a roadmap for the next ten years, with huge investments. The introduction of Vande Bharat trains, the establishment of dedicated freight corridors, and measures to improve passenger safety are all new business opportunities. Serve the company”.

Significant investments have been made in the energy sector. The development of solar parks and mega-scale solar power projects have been announced, with plans to build 25 solar parks over five years with a target solar power capacity of over 20,000 MW. This will increase demand for the company’s products in the power systems business.
CG Power is operationally and financially well-positioned to develop and seize these potential opportunities.

Medium- and long-term opportunities and prospects remain strong. However, the company faced the aftermath of the Russia-Ukraine war over the following year. The company said that continued disruptions to supply chains, high input costs due to high inflation, and pressure on margins are challenges that cannot be ignored.

CG Power further said that it has been identifying areas of synergy with Tube Investments and Murugappa Group to take the growth pillar to a higher level in the next 3-5 years. Among the many growth drivers, electric vehicles, fast electronics (FMEG), railways, steel, agriculture, pharmaceuticals, defence, cement and renewable energy are some of the key areas where the company is committed to delivering world-class and technologically advanced products.