CG Power and Industrial Solutions Limited’s shares went up by 4 percent to Rs 660 each in morning trading on May 30 after international brokerage UBS raised the target price due to positive growth prospects.
UBS set a new target price of Rs 850, implying a 35 percent increase from current market levels. Previously, UBS’s target price was Rs 580.
Analysts believe the company is smart with its capital and that careful spending will boost profits in the coming quarters. Additionally, strong capital allocation suggests good demand in the medium term. “The company has top-notch profitability and significant potential value,” UBS said in a recent note.
Around 10:10 am, CG Power’s shares were trading at Rs 652, up 3.3 percent from the last close on the NSE. The share price has risen 18 percent in the last month.
For the January-March 2024 quarter, the company reported a standalone profit after tax of Rs 240.59 crore, slightly up from Rs 240.23 crore in the same period last year. The net profit also increased sequentially from Rs 216.47 crore in Q3. For FY24, the standalone profit after tax was 28 percent higher at Rs 1,004 crore compared to Rs 785 crore in FY23.
CG Power is involved in designing, manufacturing, and marketing products related to power generation, transmission, distribution, and rail transportation.
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