Analysts Predict Up to 40% Gains for CG Power and Samvardhana Motherson Stocks—Here’s Why You Should Buy

Indian stock market indices, Sensex and Nifty 50, fell on Monday due to heavy selling in sectors like auto, IT, real estate, private banks, and energy stocks, following mixed signals from global markets. The midcap and smallcap indices also dropped by over half a percent in early trading.

Despite this market downturn, analysts have identified two stocks worth buying: CG Power and Industrial Solutions and Samvardhana Motherson International.

CG Power and Industrial Solutions | Buy | Target Price: ₹950

Brokerage firm Anand Rathi has a positive outlook on CG Power and Industrial Solutions, noting its potential for strong growth due to several factors. These include capacity expansion, a strong order book, increased domestic presence, and plans for export opportunities. Anand Rathi expects the company to achieve revenue, EBITDA, and PAT growth rates of 17%, 21%, and 18% respectively from FY23 to FY26.

They have given CG Power a ‘Buy’ rating with a target price of ₹950, suggesting a nearly 25% upside from Friday’s closing price, over a 12-month period.

Samvardhana Motherson International | Buy | Target Price: ₹300

Samvardhana Motherson International is also seen as a strong buy due to positive technical indicators like Aroon, ADX, and MACD, which suggest bullish momentum. After three months of price accumulation, the stock has shown an ascending triangle breakout.

Bharat Gala, COO of Ventura Securities, recommends buying the stock at its current market price and adding more shares if it dips to support levels of ₹203, ₹196, and ₹181, while keeping a stop loss at ₹169. The target price for Samvardhana Motherson shares is ₹300, indicating a potential upside of nearly 40% from Friday’s closing price.