Shares of CG Power and Industrial Solutions hit an all-time high of Rs 298 in intraday trade on Tuesday, rising 3% on the BSE in an otherwise weak market. The stock has risen 10% over the past two sessions.

The S&P BSE Sensex was down 0.65% at 60,354 at 10:23 am. The average OTC volume jumped 1.4 times, with 2.4 million shares changing hands on the NSE and BSE.

CG Power said on Monday that the company’s board meeting is scheduled for January 24, 2023, to consider and approve the company’s unaudited financial results for the third quarter ending December 31, 2022 (Q3FY23).

The Murugappa group of companies is engaged in power conversion equipment, including a wide range of medium and low-voltage rotating electrical machines (motors, generators, alternators), drives and stampings for all industrial applications. For over three decades, the company has been a well-known supplier of equipment and solutions to the rolling stock, railway electrification, coach and signalling sectors of Indian Railways.

In the first half (April-September) of the 2022-23 financial year (H1FY23), CG Power’s stand-alone after-tax profit rose 91% year-on-year to Rs 302 crore. Sales rose 36% year-on-year to Rs 3,147 crore. EBITDA margin expanded 200 bps YoY to 14.2% from 12.2% in H1FY22. The company said margins were higher due to improved sales realization, favourable product mix, lower input costs, procurement efficiencies and better operating leverage.

There are multiple opportunities for growth across all the company’s businesses. The industrial business is expected to post continued organic growth, given the heavy investment in infrastructure and the start of the capital expenditure cycle. Furthermore, CG Power said in its FY22 annual report that the electric vehicle (EV) segment is another significant opportunity to be catered for in the coming years.

The Ministry of Railways announced the roadmap for the next ten years and invested heavily in the railway business. It added that the introduction of Vande Bharat trains, the establishment of dedicated freight corridors and measures to improve passenger safety are new business opportunities for the company.

A lot of money has been invested in the energy sector. The development of solar parks and large-scale solar power generation projects have been announced. It is planned to build 25 solar parks within five years, with a target solar power generation capacity of more than 20,000 megawatts. These will increase demand for the company’s products in the power systems business.