Loading...
Back to narrative

CGPOWER: New Manufacturing Facility Will Drive Capacity Expansion And Value Creation

Update shared on 27 Nov 2025

Fair value Increased 1.27%
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
-13.3%
7D
-3.3%

Analysts have raised their price target for CG Power and Industrial Solutions from ₹781.94 to ₹791.87, citing modest improvements in revenue growth projections and profit margins that support a slightly higher company valuation.

What's in the News

  • The board has approved the establishment of a new Greenfield Switchgear manufacturing facility in Western India, aiming to double the company's current Switchgear manufacturing capacity and expand across Medium Voltage and Extra High Voltage segments (Key Developments).
  • The new facility, with an estimated cost of INR 7,482.0 million, will be funded through a mix of internal accruals, equity, or debt and is expected to be completed within 33 months (Key Developments).
  • The project will be constructed on approximately 35 acres, with a 72,000 sq. meter built-up area, and will support domestic and export market growth for Switchgear products, automation systems, and power electronics (Key Developments).
  • The company expects the project to create long-term stakeholder value and contribute to India’s power infrastructure development (Key Developments).
  • A board meeting is scheduled for October 29, 2025 to consider unaudited financial results, discuss the shifting of the registered office, and address other matters (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target: Increased slightly from ₹781.94 to ₹791.87, reflecting a modest valuation upgrade.
  • Discount Rate: Decreased marginally from 16.19% to 16.07%.
  • Revenue Growth: Increased slightly from 21.64% to 21.67%.
  • Net Profit Margin: Increased marginally from 10.60% to 10.61%.
  • Future P/E: Decreased slightly from 101.06x to 100.19x, indicating a slight improvement in expected earnings efficiency.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.