CGPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CGPOWER | Market Cap | 1,28,097 Cr. | Current Price | 813 ₹ | High / Low | 847 ₹ |
| Stock P/E | 106 | Book Value | 48.7 ₹ | Dividend Yield | 0.16 % | ROCE | 35.8 % |
| ROE | 26.0 % | Face Value | 2.00 ₹ | DMA 50 | 734 ₹ | DMA 200 | 695 ₹ |
| Chg in FII Hold | 0.01 % | Chg in DII Hold | 0.49 % | PAT Qtr | 337 Cr. | PAT Prev Qtr | 307 Cr. |
| RSI | 64.7 | MACD | 34.9 | Volume | 37,26,147 | Avg Vol 1Wk | 27,64,252 |
| Low price | 526 ₹ | High price | 847 ₹ | PEG Ratio | 3.44 | Debt to equity | 0.01 |
| 52w Index | 89.6 % | Qtr Profit Var | 38.1 % | EPS | 7.60 ₹ | Industry PE | 37.9 |
📊 CG Power and Industrial Solutions Ltd (CGPOWER) demonstrates strong fundamentals with ROCE at 35.8% and ROE at 26.0%, reflecting excellent capital efficiency. Debt-to-equity at 0.01 highlights a virtually debt-free balance sheet. EPS of 7.60 ₹ supports earnings visibility, while quarterly PAT rose from 307 Cr. to 337 Cr. (+38.1% YoY), showing earnings momentum. However, valuations are stretched with a P/E of 106 vs industry average of 37.9, and PEG ratio of 3.44 suggests overvaluation relative to growth. Dividend yield of 0.16% is negligible. Overall, CGPOWER’s strong position in the electrical equipment and power sector provides competitive advantage, though valuation risks limit upside potential.
💡 Entry Zone: 800–810 ₹ (near support levels and below resistance).
📈 Long-Term Holding Guidance: Attractive for long-term investors due to strong fundamentals and negligible debt. Accumulate gradually near support zones and hold for 24+ months, while monitoring valuation compression and institutional flows.
✅ Positive
- Strong ROCE (35.8%) and ROE (26.0%) highlight excellent efficiency.
- Virtually debt-free (Debt-to-equity 0.01).
- Quarterly PAT growth (+38.1% YoY) shows earnings momentum.
- DII holdings increased (+0.49%), reflecting domestic institutional support.
⚠️ Limitation
- High P/E (106) vs industry average (37.9).
- PEG ratio of 3.44 suggests overvaluation relative to growth.
- Dividend yield of 0.16% is negligible.
- Stock trading near 52-week high (847 ₹), limiting immediate upside.
📉 Company Negative News
- FII holdings increased only marginally (+0.01%), showing weak foreign investor confidence.
- Valuation stretched compared to peers.
📈 Company Positive News
- Quarterly profit growth (+38.1% YoY) highlights strong operational performance.
- DII holdings increased (+0.49%), showing domestic institutional support.
- MACD (34.9) and RSI (64.7) indicate bullish momentum.
🏭 Industry
- Electrical equipment and power sector benefits from infrastructure growth and industrial demand.
- Industry P/E at 37.9 highlights moderate valuations compared to CGPOWER’s premium.
🔎 Conclusion
⚖️ CGPOWER is a fundamentally strong company with excellent profitability, low debt, and strong technical momentum. However, high valuation, limited foreign investor confidence, and overbought conditions restrict upside potential. Entry near 800–810 ₹ offers a favorable risk-reward setup. Best suited for long-term investors willing to accumulate gradually and hold for 24+ months, with profit booking near 840–845 ₹ if resistance levels are tested.