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CGPOWER: New Switchgear Facility Will Drive Future Capacity Expansion And Returns

CGPOWER: Board Meeting Will Address Office Move And Financial Outlook Changes

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CGPOWER
AnalystConsensusTarget
Not Invested
Published 12 Nov 2024

Update shared on 11 Dec 2025

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-8.0%
7D
0.9%

Analysts have modestly increased their price target on CG Power and Industrial Solutions to ₹791.87, citing slightly higher assumptions for discount rate and future earnings multiples while keeping revenue growth and profit margin expectations broadly unchanged.

What's in the News

  • The board has approved a new greenfield switchgear manufacturing facility in Western India, aimed at doubling existing capacity across MV and EHV switchgear, substation automation systems, and power electronics solutions (Key Developments)
  • The new plant, planned on about 35 acres with an estimated project cost of roughly INR 7,482 million, will be funded through a mix of internal accruals, equity and or debt and is expected to be completed within 33 months (Key Developments)
  • The expansion is intended to alleviate capacity constraints, support growth in domestic and export markets, and strengthen CG Power and Industrial Solutions competitiveness in automation and power electronics, while contributing to India power infrastructure development (Key Developments)
  • The board has scheduled a meeting on October 29, 2025, to consider unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, and to discuss a potential shift of the registered office and other matters (Key Developments)

Valuation Changes

  • Fair Value: Unchanged at approximately ₹791.87 per share, indicating no revision to the core valuation estimate.
  • Discount Rate: Risen slightly from about 16.07 percent to 16.13 percent, reflecting a modest increase in perceived risk or required return.
  • Revenue Growth: Effectively unchanged at around 21.67 percent, suggesting stable expectations for top line expansion.
  • Net Profit Margin: Essentially flat at roughly 10.61 percent, indicating no material shift in margin assumptions.
  • Future P E: Risen slightly from about 100.19x to 100.35x, pointing to a marginally higher valuation multiple applied to forward earnings.

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